INCOME TAX ACT, 1961

Section 80 Section 139(3)(5)

Loss - Carry forward and set-off - Assessee claimed loss to be carried forward by way of revised return filed under section 139(5) in spite of filing of return under section 139(3) -

Assessee for the year under consideration has shown an income in the statement of income of Rs. 56,74,118 only which was set off agianst brought forward losses amounting to Rs. 1,05,25,004 (the actual set-off of the loss for Rs. 65,74,118.00 and the balance amount of Rs. 39,50,886.00 was carried forward. AO held that said loss could not be carried forward and set-off until and unless it had been determined in the return filed under section 139(3). Assessee submitted that in original return filed by it was showing unabsorbed losses and the depreciation. Thus it could not be said that original return was not return of loss. Furthermore, original return was filed within time allowed under section 139(1) and, therefore, same could be revised under section 139(5). Held: Return filed under section 139(3) is deemed to be a return filed under section 139(1). Perusal of section 139(3) makes it clear that all the provisions of Act would apply to such a return as if it was a return under section 139(3). In view of such specific provision, there was no reason to exclude applicability of section 139 to a return filed under section 139(3). In view of this, assessee could not be denied benefit of loss to be allowed carried forward under section 139(3) read with section 80 in a situation where loss was claimed in revised return of income.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13 & 2013-14

INCOME TAX ACT, 1961

Section 28

SUBSCRIBE FOR FULL CONTENT