Appellate Tribunal upholds assessee's claim for loss set-off in revised return for AY 2012-13

The Appellate Tribunal dismissed the revenue's appeal against the Ld. CIT(A)'s decision to allow the assessee company's claim of loss in the revised return for Assessment Year 2012-13. The Tribunal held that as the original return was filed within the due date specified under section 139(1) and the revised return was filed within the due date under section 139(5), the set off of loss was permissible. It was concluded that section 80 of the Income Tax Act could not be invoked in this scenario, affirming the Ld. CIT(A)'s decision.

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Issues Involved:
Claim of loss in revised return for Assessment Year 2012-13.

Analysis:
The appeal was filed by the revenue against the order of the Ld. Commissioner of Income Tax (Appeals) concerning the claim of loss by the assessee company in the revised return for Assessment Year 2012-13. The assessee had initially filed its return of income for the year, declaring a total income of Rs. Nil, considering brought forward losses from earlier years. However, the Assessing Officer restricted the brought forward loss for a previous year and disallowed the excess loss claimed in the revised return. The Ld. CIT(A) allowed the brought forward loss claimed by the assessee based on the revised return, stating that provisions of section 80 could not be invoked when a revised return was filed within the due date allowed under the Act. The revenue challenged this decision before the Appellate Tribunal.

The revenue contended that the Ld. CIT(A) erred in considering the claim of loss in the revised return when it was not claimed in the original return as legal and valid, contrary to the provisions of section 80 and section 139(3) of the Income Tax Act, 1961. On the other hand, the Ld. AR for the assessee argued that if the original return of income was filed within the due date specified under section 139(1), any loss claimed by filing a revised return within the due date specified under section 139(5) could be allowed to be carried forward and set off against income of subsequent years.

After hearing both parties and examining the facts and legal provisions, the Tribunal noted that the assessee had filed the original return within the due date as prescribed under section 139(1) and subsequently filed a revised return within the due date specified under section 139(5). The Tribunal interpreted the provisions of section 80 and section 139(3) of the Act, emphasizing that if an assessee incurs a loss to be carried forward, the return of income must be filed within the time stipulated in section 139(1). As the assessee had fulfilled these conditions, the Tribunal held that the Ld. CIT(A) was correct in allowing the set off of loss as per the revised return and in concluding that section 80 of the Act could not be invoked in the present case. Consequently, the appeal filed by the revenue was dismissed, upholding the findings of the Ld. CIT(A).

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