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Late filling of return-dis-allowances of current years loss or c/f losses too

Vivek Agrawal (GST Practitioner) (181 Points)

05 December 2019

The assessee failed to file return on or before due date in AY 2017-18.

Assessee has b/f absorbed losses Rs. 5 lakh in the beginning

Assessee incurred losses in AY 2017-18 Rs. 1 lakh

will assessee be allowed to c/f 6 lakh for next AY or he will be allowed only 5 lakh to be C/f

Assessing officer denied to allow the whole Rs 6 lakh to c/f. Is AO correct ?

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6 Replies

Kalpesh (student) (38 Points)
Replied 05 December 2019

Only 1 lakh will be disallowed, the rest 5 lakh will be allowed. Refer to section for Carry forward of losses Section 80 r.w.s 139(3)

Kapadia Pravin (17249 Points)
Replied 05 December 2019

Late filing of loss return deprives assessee from carry forward benefit.

However this does not apply to carry forward of loss under IFHP (despite late filing of return)

Vivek Agrawal (GST Practitioner) (181 Points)
Replied 06 December 2019

@ kapadia Pravin

sir,

I request you to please reply specifically, whether assessee shall be able to carry forward loss of Rs. 6 lakh or Rs. 5 lakh

Vivek Agrawal (GST Practitioner) (181 Points)
Replied 06 December 2019

@ kapadia Pravin

sir,

I request you to please reply specifically, whether assessee shall be able to carry forward loss of Rs. 6 lakh or Rs. 5 lakh

Kapadia Pravin (17249 Points)
Replied 06 December 2019

Although the loss of the current year cannot be carried forward unless the return of loss is submitted before the due date

but the loss of earlier years can be carried forward if the return of loss of that year(s) was submitted within the due date and such loss has been assessed.

It should be 5 lakhs c/f . provided brought forward losses were reported in ITR AY 2017-2018 and claimed in that ITR as to be carried forward.

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