We have filed ITR for Financial Year 2010-11 and by mistake, we could not carry forward business losses & unabsorbed depreciation of Financial Years preceding the F.Y. 2010-11 in Financial year 2010-11. but we have shown these losses in tax audit of F.Y 2010-11 & also in tax audit along with ITR of succeeding financial years.
we have received Assessment order u/s 143(3)(Scrutiny assessment order)ON OCT,2013 in respect of Same F.Y. 2010-11.
now two question arises here towards me, first is what we have to do further regarding this mistake before completion of Assessment. second, can we amend this mistake after completion of assessment.
08 February 2014
Here, Following sections are relevant for you:
•Section 32(2) •Section 72(1) •Section 80
Section 32(2) of Income Tax Act, 1961 covers the provisions of carry forward of unabsorbed depreciation.
Section 72(1) of Income Tax Act, 1961 covers the provisions of carry forward and set-off of losses arising from a business or profession.
Sections 80 of Income Tax Act, 1961 cover the provisions of submission of return for losses.
As per section 80 of Income Tax Act, 1961, the assessee must have filed a return of loss under section 139(3) in order to carry forward and set off a loss. In other words, non filing of a return of loss disentitles the assessee from carrying forward the loss sustained by him. Such a return should be filed within the time allowed under section 139(1). This section covers the sub section (1) of section 72 or sub section (2) of section 73 or sub section (1) or sub section (3) of section 74 sub section (3) of section 74A. Its mean that provision covered under section 32(1) is not covered under section 80. Hence, assessee can claim the benefit of unabsorbed depreciation even in the case of non filing of return (CIT v. Jaipuria China Clay Mines (P.) Ltd. [1966] 59 ITR 555 (SC).
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