Rectification u/s 154 of IT Return filed

Efiling 1009 views 2 replies

Priyank

Learner

98 Points Joined December 2009

Dear Sir,

Please provide your valuable feedback on the following issue :

For A.Y. 2008-09, a Pvt. Ltd. Co. has claimed Current year Business loss of Rs. 5,00,000/- to be carried forward. Said Original return was filed on 08.08.2008, showing clearly the current year loss to be carried forward.

On 13.12.2008, revised return of the said assessment year was filed, for claiming business loss at Rs. 9,50,000/- (instead of Rs. 5,00,000/- claimed earlier). However due to clerical mistake in filing the Revised return, the column of “Current Year Loss, if any”, on the face of the ITR-V Acknowledgement is showing NIL loss to be carried forward.

While filing Income Tax Return of the A.Y. 2009-10 also, the said loss was not Brought forwarded to set off against Current year income.

Now, is there any remedy to the situation?

1. Is there any provision to revise the return of A.Y. 2008-09?

2. Can an Application for Rectification u/s 154 be filed to rectify Deemed Intimation U/s 143(1) of the IT Act? Please note that, the assessee has not received any intimation u/s 143(1).

Please suggest a course of action.

Replies (2)

CA Amit Kanani

Practicing CA

338 Points Joined September 2008

No, u can not file Revise return now, its timt limit is 31-3-10 for AY 2008-09.

But u can make application U/S 154 and within 6 months AO have to reply for Application.

So, u make application for rectification, its valid.

Aditya Maheshwari

CA in Practice

35867 Points Joined June 2009

This case law might help

ITO must allow set off even if it is not claimed - There is a duty cast on the ITO to apply the relevant provisions of the Act for the purpose of determining the true figure of the assessee’s taxable income and the consequential tax liability. Merely because the assessee fails to claim the benefit of a set off, it cannot relieve the ITO of his duty to apply section 72 in an appropriate case - CIT v. Mahalakhsmi Sugar Mills Co. Ltd. [1986] 160 ITR 920 (SC).