25 September 2007
Sir, I have a brought forward business loss for the Previous Years 2003-04 and 2004-05 totalling Rs.2.82 Lakhs and the returns for both those years were filed within the due dates of filing of returns u/s 139 But for the Previousyear 2005-06 I have not yet filed my retruns and I have a taxable business income of Rs.1.8 Lakhs.
1.Can I set off Rs.1.8 Lakhs income(P.Y.2005-06) against the brought forward loss Rs.2.82 Lakhs (earlier years duly filed)? 2.Can I carry forward(though I have not filed 2005-06 returns till date and file the returns now) the business loss of Rs.1.02 Lakhs (2.82-1.8) as the loss pertains to earlier year losses duly brought forward till 2004-05. 3.I am of the opinion that Section 80 does not restrict the carry forward of earlier year losses and also does not restrict the set off of previous brought forward losses though returns are not filed in due date for current P.Y. Please help me
26 September 2007
Your understanding of the provision of sec. 80 is correct. The requirement of furnishing the return of income within due date is for the year of loss return only but not for the year of setting of the loss.
CAclubindia
