2019 (5) TMI 1067

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....ce the Petitioner has not been permitted to carry forward the business losses because of a programming difficulty which precludes the Petitioner from claiming it while filing its return online in Form ITR- 6. 2. The facts in brief are that the Petitioner is engaged in the business of manufacturing Bi-axially Oriented Polypropylene Films ('BOPP'). The Petitioner also exports BOPP films. The Petitioner has manufacturing units set up both in the Domestic Tariff Area ('DTA') as well as Special Economic Zone ('SEZ'). The Petitioner is also qualified as an 'entrepreneur' as defined in Section 2(j) of the Special Economic Zones Act, 2005. The Petitioner has been allowed deduction under Section 10AA of the Income Tax Act, 1961 ('Act') since Asse....

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....e jurisdictional Assessing Officer ('AO') on 3rd August, 2018 pointing out to the above discrepancy in the online filing of Form ITR- 6. The Petitioner enclosed a hard copy of the income tax return and requested that it be acted upon so that the carry forward of the losses of the ineligible unit would not be denied to the Petitioner. This was followed by a representation on 15th November, 2018 to the Central Board of Direct Taxes ('CBDT') invoking its jurisdiction under Section 119(2) of the Act. The Petitioner pointed out that it is facing genuine hardship due to being unable to carry forward the losses of the ineligible unit. This was followed by reminders on 21st January, 13th February, and 25th March, 2019. Thereafter, the present petit....

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.... 13.3 In view of the above, section 10AA of the Income-tax Act has been amended to clarify that the amount of deduction referred to in the said section shall be allowed from the total income of the assessee computed in accordance with the provisions of the Income-tax Act before giving effect to the provisions of the said section and the deduction under the said section in no case shall exceed the said total income. 13.4 Applicability: This amendment takes effect from 1st April, 2018 and will, accordingly, apply from assessment year 2018-19 and subsequent assessment years." 7. Once it is abundantly clear that the amendment in Section 10AA takes effect only from 1st April, 2018 and would apply only from AY 2018-19, it is cle....