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Carry forward loss -depreciation loss

R.Venkadesh (Article Assistant) (136 Points)

05 October 2022

Is unabsorbed depreciation loss can be carry forward even if return not filed for that A.Y.

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5 Replies

Kev Men (756 Points)
Replied 05 October 2022

No...it cannot be carried forward. Return needs to be filed to carry forward even if it is a belated return.

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Sammidi Mangamma (39 Points)
Replied 05 October 2022

In case of unabsorbed depreciation and loss from house property can be carried forward even though return of loss is not filed u/s 139(1) However filing of return of loss is mandatory in case of
• business loss
• speculation business loss
• specified business loss
• loss from head of capital gains
• loss from activity of owning and maintaining race horses

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veerendar singh (tax consultant) (3301 Points)
Replied 05 October 2022

Its completely ok to not file return of loss to claim unabsorbed depreciation

you may go ahead and claim it. dont worry

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Kev Men (756 Points)
Replied 07 October 2022

@ veerendar Singh

The querist has stated that return is not filed. If return is not filed, carry forward is not possible as the income tax department will not know.
Since carry forward is not done due to non-filing of return, in future years the same will not be brought forward.

As per supreme court decision in Goetze (India) Ltd vs CIT (2006), it is stated that assessee should have made the claims in the ITR filed instead of a letter.

So inorder to carry forward the unabsorbed depreciation, a return needs to be filed even though it might be a belated return.

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