Tribunal Grants Appeal: Carry Forward of Losses for 2019-20 Permitted After Error in Revised Return Timing Corrected. The Tribunal allowed the appeal, directing the Assessing Officer to permit the carry forward of the loss amount for Assessment Year 2019-20, which was ...
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Tribunal Grants Appeal: Carry Forward of Losses for 2019-20 Permitted After Error in Revised Return Timing Corrected.
The Tribunal allowed the appeal, directing the Assessing Officer to permit the carry forward of the loss amount for Assessment Year 2019-20, which was initially disallowed by the CIT(A). The Tribunal found that the original return was filed within the specified time limit, and the error in considering the revised return as belated led to the incorrect disallowance of the carry forward of losses. The decision corrected this error, allowing the assessee to carry forward the claimed losses.
Issues: The issues involved in the judgment are the disallowance of the claim of brought forward loss of Assessment Year 2019-20.
Summary:
Issue 1: Disallowance of claim of brought forward loss of AY 2019-20
The appeal was filed against the order of the Learned Pr. Commissioner of Income Tax(Appeals) for the Assessment Year 2020-21. The assessee claimed to carry forward its losses from AY 2019-20, amounting to INR 23,73,82,507. The original return for AY 2019-20 was filed within the specified time limit, but a revised return filed later was considered belated. The CIT(A) upheld the disallowance made by the Assessing Officer. The assessee contended that the original return was filed on time, and the error in considering the revised return as belated led to the disallowance. The Tribunal found that the CIT(A) erred in not allowing the carry forward of losses and directed the Assessing Officer to permit the carry forward of the loss amount for AY 2019-20.
The Tribunal noted that the original return for AY 2019-20 was filed within the specified time limit, but due to an error in considering a later revised return as belated, the carry forward of losses was disallowed. The Tribunal held that the CIT(A) erred in not allowing the carry forward of losses and directed the Assessing Officer to permit the carry forward of the loss amount for AY 2019-20, as claimed by the assessee.
In conclusion, the Tribunal allowed the appeal of the assessee, directing the Assessing Officer to allow the carry forward of the loss amount for AY 2019-20, which was erroneously disallowed by the CIT(A).
Order pronounced in open Court on 17th January, 2024.
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