Set - off or Not

This query is : Resolved

zeal sheth (Querist)
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13 September 2009 My Client had loss of rs. 5 lakhs for A.Y. 07-08 and he filed return of income u/s. 139 also but the next year means A.Y. 08-09 he has not file return of income. For A.Y. 09-10 can he set off loss of Rs. 5 lakhs Against his Income of Rs. 6 lakhs?

CA Punit

CA Punit (Expert)
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13 September 2009 Yes.. probably
For c/f & set off of loss (other than depreciation) return filing within time limit u/s 139(1) is necessary.. it is not so that return filing should be continuous even in subsequent years.
As such in ur case set off of loss for A.Y. 07-08 is allowable. Also unabsorbed depreciation(if any) of A.Y. 08-09 is allowable.
However it is suggested that a belated return for A.Y. 08-09 is also filed

Kapil Arora

Kapil Arora (Expert)
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13 September 2009 Yes, the assesse can caary forward and set off the loss because as per section 139 the assessee has to file the return for carryforward of loss,,,,,and accordingly the return was already filed in that that assessment year so he can,,,,,

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CA CHINTAN AJMERA

CA CHINTAN AJMERA (Expert)
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14 September 2009 I want to ask expert that if in above case, in A.Y. 08-09 if there is 4 lakhs income but he has not file his return of income. And now he claim Set off for A.Y. 09-10 is it possible ?

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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16 September 2009 as per section 80 right to carry forward loss is lost if return is not filed in time for the yr in which the loss was incurred..... thus u can set off.

in case of CA AJMERA 4 lacs income need to be sett off first.....assessee need to file return for 08-09.