Business loss under belated return

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Nagarajan (Querist)
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07 January 2012 Hi,
As we know filing of return of loss within due date is one of the conditions for carry forwarding business loss under section 80 of I-T act. If the return of loss is filed after due date whether the loss can be carry forwarded.

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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08 January 2012 Your question has the answer itself. Section 80 requires that return be filed as per section 139(3) to carry forward the losses. Section 139(3) requires filing of return within the due date.

So if a belated return is filed losses from business cannot be carry forward.

However, depreciation losses can be carried forward indefinitely as it is governed by section 32.

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CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)
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09 January 2012 Business loss can not be forwarded if return is filed after due date. However, unabsorbed depreciation can be forwarded to next year in spite of late filing of income tax return

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Nagarajan

Nagarajan (Querist)
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11 January 2012 But one of my friend told that there is a change in stand. He told me that loss under belated return can be carry forwarded according to latest case law. So, please clarify me whether there is any case law in this regard.

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