Assessing order - Loss brought forward

[IDPLUIL GROUP]

can the assesing officer pass the AO for the current AY without considering the loss brought forward from Previous years.

AI Summary

Can Assessing Officers Issue Orders Without Considering Carried Forward Losses? Legal Requirements vs. Practice Explained. A query was raised about whether an assessing officer (AO) can issue an assessment order without considering losses carried forward from previous years. One respondent stated that, legally, the AO should not do so, but in practice, orders are often issued without setting off past losses, necessitating rectification through appeals. Another respondent emphasized that the AO cannot finalize an assessment without accounting for previous losses, as per the Income Tax Act, and the assessee has the right to claim these losses. The discussion highlights the discrepancy between legal requirements and actual practices in tax assessments.