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

Carry forward losses must be considered in assessments; failure can be corrected by rectification or appeal. Carry forward losses must be taken into account when computing taxable income; an assessing officer should allow set off or carry forward of past losses and is expected to intimate the assessee about carrying forward losses. In practice AO may omit such adjustment and raise demands, requiring the assessee to seek rectification or pursue appeal/revision to secure the proper carry forward and set off. The document notes calls for officer accountability for wrongful orders.