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Assessement Vs CIT

CA Sanjay Jha (ACCOUNTS MANAGER) (914 Points)

14 April 2011

This is real typical question.Fact is as under.

Company F.y 2007-08 ITR 6 Loss return file late loss can not be carry forward..

in this itr depreciation schedule fill up correctly but miss thedepreciation amount fill up in BP Schedule.

AO disallow to given carry forward of Depreciation and Losses reason that Depreciation not claim and ITR file late respectively.

F. Y. 2008-09 and 2009-10 also file late.

This case is going to CIT (Appeal) now.

Mistake of Depreciation occured now.

How can resolved this situation so that Depreciation related to F. Y. 2007-08 carry forward next year.

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2 Replies

Rachit (Ca-Final Article.) (565 Points)
Replied 15 April 2011

To the best of my knowledge the same cannot be carried forwad as

the main base on which you can carry forward your dep. is wrong.

you can carry forward your dep . only if you had filled the same in your return but you didnt filup ther same and also you had filed late return so you even cannot revised your return so as per my opinion you cannot carry forward the same.............

ANd other than this it depend upon the discreatiobnary power of the CIT as he can allow the same.........

Krutesh Patel (ACA) (727 Points)
Replied 15 April 2011

Hello Mr. Jha

1. Regarding claim of c/f of depreciation, as per provisions of IT Act, claim of depreciation is compulsory. Even if assessee has not claimed any depreciation, the AO is bound to consider and allow you the claim of depreciation. Hence you can argue to CIT(A) . (See Sec 32)

2. For c/f of loss, you can approach authority u/s 119 and if you are able to prove that there was mistake beyond your control, the may allow you c/f of loss.