Set off

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Nikhil (Querist)
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08 January 2016 An assessee having Long Term Capital Loss has filed his IT Return within 139(1) due date. On next year, assessee had Long Term Capital Gain but has filed his IT Return after due date as mentioned u/s 139(1). The AO has disallowed set off of LTCL and LTCG.

Is contention of AO correct. Kindly enlighten

Ankur Singhal

Ankur Singhal (Expert)
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08 January 2016 Dear
According to Section 80 of the IT Act, carryforward is allowed only when such loss has been determined in pursuance of return of loss submitted by the assessee on or before due date for filing return prescribed under Section 139(1) of the IT Act.
unfortunately, you may no longer be able to carry these losses forward and adjust them

Nikhil

Nikhil (Querist)
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13 January 2016 Dear Ankur,

The assessee has filed his Loss Return well within due date mentioned u/s 139(1). However, AO denied set off in subsequent year, in which year the Assessee has filed return belatedly.

Anyway Thanks for the reply, I have found needed points from Case Law : Faisal Abbas v/s DCIT

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