Some long term capital losses were carried over in the past which were reported in the relevant IT Returns submitted well before the due dates for filing expired. These ITRs were filed in manual (physical) form.at the local AO.
In the ITR for AY 2018-19 (filed electronically), a part of the long term capital gain incurred during the year, was claimed for set-off in the CFL Schedule of AY 2018-19, giving therein the correct filing dates and amounts of carried over LT capital losses reported in the earlier years for which the ITRs were filed manually..
CPC has rejected the claim for set off, on the ground that the dates of filing of the manually filed ITRs, are shown as BLANK in their record. CPC contends that as the filing dates in their records shows blank, those returns were filed after the due dates fixed for filing, and so the previous years' losses are not allowed to be carried forward to future years!
CPC refused to accept the explanation given by the assessee (in response to the CPC intimation) that the filing dates were correctly stated in the 2018-19 ITR and that the assessee is willing to send copies of the acknowledgement forms (ITR V) to the CPC for verification. CPC has however sent another intimation for non-acceptance for carrying forward of the earlier years' losses, repeating the same reason given earlier, effectively refusing to accept the set off claim. CPC has not yet sent an Assessment Order.
The local AO has also orally expressed his inability to help in the matter, as this is a systems problem at CPC and he has no authority to amend the CPC records.
What should the assessee do to in this case in which he is not at all responsible for incomplete information with the CPC, denying him the set off claimed? What effective explanation can be given in response to the second intimation?
If CPC sticks to its stand, it would also affect similar future set off claims. This is clearly a case where migration of records from manually filed ITRs to the CPC suffered some inadequacy which cannot be attributed to the assessee.
Thank you.
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