Carry Forward and set off of losses

This query is : Resolved

S.M.Indapurkar

S.M.Indapurkar (Querist)
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02 March 2009 Asst Year 2004-05 Loss determined u/s 143(3) Rs.2,40,000/-,A.Y,2005-06 Loss Rs.5,000/- u/s 143(1)(a).During A.Y,2006-07 Return filed showing Income Of Rs.8,000/-.Assessee failed to mention carry forward loss in A.Y.2006-07.Scrutiny Completed in the month of Dec 2008 with Income of Rs.2,10,000/-.carry forward of loss denied by A O on the ground that it is not mentioned in I T Return.During A Y 2007-08,A.Y.2008-09 above loss has been mentioned.A O insisting to pay taxes on the ground that it is not mentioned in the Return filed.Is the A O Correct?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 March 2009 AO's action of not giving the carried forward loss is correct since you have not put up the claim while filing the return of income. However,you can move a rectification petition before the A.O.
Again if the A.O is rejecting the said petition you may file an appeal and stay petition before the CIT (Appeals).