08 October 2024
If a return for AY 2021-22 comes up for reassessment before 31st March, 2025 and the assessing officer finds the following while enquiring into the capital gain/ loss booked by assessee: a). In AY 2018-19, assessee had incorrectly reported a short term capital loss (STCL) of 3 lakhs which was carried forward into AY 2019-20 when actually there was a short-term capital gain of 50000 rupees during this year b). In AY 2019-20, assessee had offset 1 lakh of STCL against STCG and carried forward the balance 2 lakhs to AY 2020-21 c). In AY 2020-21, assessee had offset another 1 lakh of STCL against STCG and carried forward the balance 1 lakhs to AY 2021-22 d). In AY 2021-22, assessee had offset the remaining STCL of 1 lakh against STCG for that year
In such a case, can the AO do any or all of the following given that brought forward loss is a continuing issue ? a). Disallow the setoff of 1 lakh for AY 2021-22 because the origin of this loss which was in AY 2019-20 was incorrect in the first place b). Disallow the setoff for AY 2019-20 and AY 2020-21 (even though the escaped income is far less than 50 lakhs) and raise demands for these years c). Disallow the setoff for AY 2018-19 (even though it is time-barred) and raise demand for this year
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