Filing of IT return for FY - 2018 - 19

This query is : Resolved

Gopalakrishnan. S (Querist)
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29 September 2020 Sir,
One of my friend is a partner in a firm. The Partnership firm was
begun in the FY 2018 - 19 and the turnover for that financial year
is only 2 to 3 lakhs and ended up with loss.
Due to various reasons, his firm could not continue its business and became inactive in the subsequent financial year, i.e 2019 -20. The partners have no idea of continuing the business in future.
As such, can they file ITR for FY 18-19 with a Loss and if so, is it necessary to go for Tax Audit?
Or, can they remain without filing ITR for FY 18-19.
Further, can they file a NIL return for FY 19-20 ?
How to formally close their business for Income tax purpose?

Pls. advice.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 September 2020 They can file ITR for FY 18-19 with a Loss and it is not necessary to go for Tax Audit.
Yes, file Nil return for next year and surender PAN to close business.