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.

[DEV KUMAR KOTHARI]

Legally and correctly not. But as per practice many times A.O. passs order without setting off poast losses and raises demands. Then the assessee has to get it rectified by the A.O. or through directions in appeal / revision orders. That is the practical aspect. Professionals shlud be thankful for wrong doings of the government officers becasue a major part of professionals assignments areises only becasue of wrong orders passed by authorities. If they work fully as per law, the professional assignments shall be reduced considerabley. But the question is how long brain drain shall continue due to whims, moods and wrong practices of government officers. The concerned ministried should issue such directions and make law that for wrong done by officers they are penaluised and made accountable.

[Guest]

Assessee can claim the carry forward losses of past years. AO can not pass the assessment order without allowing the loss of previous years.As per section 157 of Income tax Act , AO should intimate the assessee about the carrying forward of losses. It is not mandatory, but assessee can claim the carry forward of loss of 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.