INCOME TAX ACT, 1961

Section 139 read with Section 80

Loss - Carry forward - Original return filed within due date - Revised return filed later on

Assessee had filed its return of income declaring total income nil, being income from business, less set off of brought forward loss of earlier years. Assessee had considered brought forward losses for assessment year 2009-10 as per revised return filed for that year. AO, however restricted the brought forward loss for assessment year 2009-10 as per original return of income filed for that year by invoking the provisions of section 80 and accordingly, disallowed excess loss claimed by assessee, as per revised return of income. Held: Section 139(3) specifies that loss sustain under the head income from business shall be allowed to be carried forward under the relevant provisions of the Act, provided the return is filed within the due date as prescribed under the provisions of section 139(1). Original return was filed before the due date of filing return under section 139(1). Similarly, assessee had filed revised return before the due date of filing revised return. From the plain reading of section 139(3) read with section 80, it was clear that if assessee incurred a loss, which it claimed to be carried forward, then it had to file its return of income within the time stipulated in section 139(1). Since, assessee had filed original return within the due date prescribed under section 139(1), then any revised return filed, subsequently within the due date prescribed under section 139(5), nature of original return filed under section 139(1) and consequently, conditions prescribed under section 139(3) was fulfilled and accordingly, loss claimed shall be allowed to be carried forward.

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2012-13

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