Petitioner filed an application before Authority for Advance Rulings (AAR) seeking answer as to whether it was entitled to carry forward accumulated capital losses, in terms of section 74 of the Act .  AAR held that petitioner was not entitled to carry forward accumulated losses because they were not ‘assessee’ who had claimed a loss in earlier assessment year by filing return of income.  Aggrieved by the order of the AAR the petitioner filed the writ petition. Dismissing the petition the Court held that  before a carry forward loss can be claimed by assessee, it is necessary that a loss has been determined in pursuance of a return filed for earlier assessment year under section 139. As the petitioner had not filed any return of income claiming loss for earlier assessment year, order passed by AAR  is affirmed.(Referred K.V.K Raju v. CIT (2001) 252 ITR 754 (AP) (HC).The question was answered by the Authority for Adavnce Rulings in the context of the application filed by the aasessee alone with regard to its claim . Petitioner Nos 2 to 4 could not be heard .