Carry forward and set off of losses: BIFR sanctioned rehabilitation schemes can override income tax carry forward restrictions.

A BIFR sanctioned rehabilitation scheme that prescribes carry forward and set off of losses will have overriding effect over conflicting provisions of the Income tax Act where the loss return was filed late; the Assessing Officer must implement the scheme's tax treatment. BIFR cannot itself authorize late filing but may direct an operating agency to prepare a scheme which, once sanctioned, allows carry forward despite delayed filing.

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