We are a partnership firm engaged in wholesale trading business. In respect of our partnership firm, we were regular in filing of income tax return and audited our accounts under section 44AB of the IT-Act till the A.Y.2016-17. Due to some internal problems, we have to shut down our firm but not dissolved so far as there are some loans and creditors remaining to be paid off and supposed to carry on the business after reconstituting the partnership. Therefore we don’t have any turnover for the F.Y.2016-17 but only have unabsorbed depreciation around Rs.10,000 and business losses around Rs.50,000 on account of interest on bank overdraft and bank charges. There is no other revenue or operating expenses for the above financial year. Therefore, we all decided not to audit the books of account and to file the income tax return for the A.Y2017-18 since we have no revenue from operation and the net result from business is also loss.
Are we eligible to carry forward the unabsorbed depreciation alone without getting our books audited U/s.44AB of the Act and filing of return after the due date?
Does the answer will change, if we are supposed to carry forward the business losses other than unabsorbed depreciation too?
CAclubindia
