TaxTMI 
TaxTMI 
2025 (11) TMI 979
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.... of Income Tax (Appeals) 3, Chennai [hereinafter referred to as the CIT(A)) erred in upholding the disallowance made by CPC-ITD i.e. Centralized Processing Centre, Income tax Department, in respect of the set- off of brought forward business losses of Rs. 1,10,28,515/- claimed of A.Y.2023- 24, on account of the Return of Income of previous year of which set-off of business losses is claimed was furnished beyond the due date specified u/s. 139(1) of the Act. 2. Your appellant submits that the due date for filing return of income for A.Y.2023-24 was 31.10.2023 and return of income was filed on 10.11.2023, i.e. the said return of income was filed belatedly by 10 days, due to unforeseen medical issues suffered by the person who files t....
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....eld in clear and unambiguous terms that the requirement under section 139(3) read with section 80 of the Act-namely, that a return of loss must be furnished within the time prescribed under section 139(1) to entitle the assessee to carry forward such loss-is mandatory and not directory. The relevant finding of the Ld. CIT(A) is reproduced as under: "7. Decision :- The appellant has filed the Rol for AY-2024-25 on 22-10-2024 admitting a total income of Rs. 1,85,60,980 after claiming set-off of brought forward loss of Rs.1,10,2,515. The case was processed U/s. 143(1) and the total income was determined as Rs. 2,95,89,490 by denying the claim of adjustment of brought forward losses, on account of the return of the previous year of whi....
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.... of previous year of which set-off of business losses is claimed was furnished beyond the due date specified u/s. 139(1) of the Act. The due date for filing return of income for A.Y. 2023-24 was 31.10.2023 and return of income was filed on 10.11.2023, i.e. the said return of income was filed belatedly by 10 days, due to unforeseen medical issues suffered by the person (Mrs. Vaishnavi Guduri) who files the Return of Income of the Assessee Company and the said person underwent through urgent and immediate medical procedures and surgery in last days of October 2023 due to severe and unbearable pain on account of Kidney stones. As soon as the said person recovered and resumed the office, she immediately filed the aforesaid Return of In....
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....n this Chapter, no loss which has not been determined in pursuance of a return filed in accordance with the provisions of sub-section (3) of section 139, shall be carried forward and set off under sub-section (1) of section 72 or sub-section (2) of section 73 or sub-section (2) of section 73A or sub-section (1) or sub-section (3) of section 74 or sub-section (3) of section 74A. 7.3. As per provisions of Section 139(3) "(3) If any person who has sustained a loss in any previous year under the head "Profits and gains of business or profession" or under the head "Capital gains" and claims that the loss or any part thereof should be carried forward under sub- section (1) of section 72, or sub-section (2) of section 73, or sub-....
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.... into a return under section 139(3), in order to avail benefit of carrying forward or set-off of any loss under section 80." 3. Before us, the Ld. counsel for the assessee however submitted that the Ld. CIT(A) has not condoned the delay in filing the return of income. He relied on the decision of the Hon'ble High Court of the Bombay in the case of Western Arch Developers v. PCIT reported in (2025) 177 taxmann.com 313 (Bombay) and decision in the case of ADCC Infocom (P.) Ltd. v. Pr. CIT [2023] 150 taxmann.com 529 (Bombay) the Ld. CIT(A). 4. On the contrary, the Ld. Departmental Representative (DR) relied on the order of the Ld. CIT(A) and submitted that no specific provision for condoning the delay in filing the return of income f....