( 1 ) THIS appeal was admitted on the following two grounds :"i. Whether, when a second revised return was filed under Section 139 (5) of the Act within the specified period of one year from the end of the relevant assessment order (year), the AO is obliged to adjust the demand made under Section 143 (1) (a) raised on the basis of the earlier returns and whether the Tribunal is justified in law in deciding the case without considering the legal position ? ii. Whether, in view of the fact that the petitioner had filed a revised return on 7th Jan. , 1991 claiming a loss of Rs. 2,49,05,044 and carry forward the loss of unabsorbed depreciation of Rs. 6,26,26,557 the Tribunal without deciding the question as to whether there was any reduction of loss consequent upon the filing of the second revised return on 7th Jan. , 1991 could send the matter back when there was no dispute regarding the carry forward unabsorbed depreciation of a sum of Rs. 6,26,26,557 ?"

( 2 ) IN order to answer these two questions, it would be relevant to narrate the facts in brief. (1) Return under Section 139 (1) of the IT Act, 1961 covering a period of 21 months from 1st July, 1987 to 31st March,