TaxTMI 
TaxTMI 
can the assesing officer pass the AO for the current AY without considering the loss brought forward from Previous years.
Assessing order - Loss brought forward
16 Dec 2008 
2 Replies 
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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. (AI Summary)
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. (AI Summary)