2026 (6) TMI 1082

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....l. After perusal of the same, I am satisfied that delay in filing of appeal is not intentional, the delay has been caused for the reasons stated in application which appears to be bonafide. Thus, delay of 89 days in filing of appeal is condoned and appeal is admitted for decision on merits. 3. The short issue in the instant appeal is denial of set off of capital gains of impugned assessment year against carry forward short term capital losses of A.Y. 2020-21. Facts of the case in brief as emanating from records are; the assessee had filed return of income for AY 2020-21 declaring Short Term Capital Loss (STCL) of Rs. 62,74,635/-. Undisputedly, the return of income for A.Y. 2020-21 was filed beyond the due date as specified u/s 139(1) of ....

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....ing the impugned order, submitted that the provisions of section 80 of the Act are unambiguous. For the assessee to claim benefit of carry forward of losses, it is mandatory to file return of income within the time prescribed u/s 139(1) of the Act. He thus prayed for dismissing appeal of the assessee. 6. Both sides heard, orders of the lower authorities examined. Admittedly, the assessee's return of income for A.Y. 2020-21 was filed beyond the due date prescribed for filing return u/s 139(1) of the Act. The assessee in return of income had reported STCL in A.Y. 2020-21, which the assessee intended to carry forward. The claim of the assessee was denied by the CPC vide intimation u/s 143(1) of the Act dated 25/11/2021. In the impugned asse....

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....ow, in A.Y. 2024-25, the assessee cannot be allowed the benefit of set off of profits against losses pertaining to A.Y. 2020-21. The remedy against denial of carry forward of losses of AY 2020-21 does not lie in appeal for AY 2024-25. 8. The assessee has placed reliance on the decision rendered in the case of CIT vs. Kullu Valley Transport Co. Pvt. Ltd. (supra). The decision rendered in the said case is distinguishable on facts. In the case of Kullu Valley Transport Co. Pvt. Ltd. (supra), the assessee had filed a belated return of income and was denied the benefit of carry forward of losses on the ground that the return was not filed within the prescribed time. The Hon'ble Supreme Court, in facts of the said case held, that where a retur....