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Set off & carry forward of losses

Vishal (Article Asst.) (95 Points)

17 September 2014

Hey guys Suppose , For a company Loss in A.Y. 2012-13 is rs . 12500 Profit in A.Y 2013-14 is Rs. 50000 but company failed to take the set off of the said loss And now, Profit in A.Y 2014-15 is Rs. 5,00,000 So can the company take the set off of the loss in current year. Loss in A.Y. 2012-13 is related to Loss from Business other than speculative business. Its Urgent ......

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3 Replies

Vishal (Article Asst.) (95 Points)
Replied 17 September 2014

Also tel me the relevant section. Is it section 79 of IT act 1961 ?

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Rinky Gupta (-) (117 Points)
Replied 17 September 2014

Yes the company can set off the loss incurred in AY 2012-12 with the profit of the AY 2014-15 provided the company has filed the income tax return before the due date.

The relevant section is section 79 of the Income Tax Act, 1961.

CA Rajat Goyal (Practice ) (57 Points)
Replied 17 September 2014

No, the company cannot setoff of the AY 2012-13 Loss in AY 2014-15. It is mandatoy to set off loss in the AY 2013-14.

It is mandatory to set off loss in the AY 2013-14.

It is mandatory to set off the carried forward losses in the immediately succeeding year, against the income of such succeeding year. Otherwise, the losses will get lapsed. Tyresoles v CIT 49 ITR 515 (Madras).

So, Revise return of AY 2013-14 and get refund of tax paid in AY 2013-14