Section 291 Intimation of loss.

Income-tax Act, 2025

At a Glance

The materials are two textual versions of a provision titled "Intimation of loss" numbered 291: one is Section 291 of the Income-tax Act, 2025 (Document 1) and the other is Clause 291 of the Income Tax Bill, 2025 - Old Version (Document 2). The Bill version includes an additional cross-reference to section 111(2) that does not appear in the enacted Act text shown. The provision affects assessees and Assessing Officers in the context of carrying forward and set-off of losses for the purposes of specified sections. Effective date or decision date: Not stated in the document.

Background & Scope

Statutory hooks: Procedure for assessment; cross-references to section 111(1) (and in the Bill 111(2)), section 112, section 113(2) and section 115(1). The provision mandates that the Assessing Officer shall notify the assessee by an order in writing the amount of loss as computed by him for the purposes of the listed sections where (a) in the course of assessment it is established that a loss has taken place; and (b) the assessee is entitled to carry forward and set off such loss under the provisions of the said sections. Definitions or further explanations are: Not stated in the document.

Statutory Provision Mode

Text & Scope

The operative command is: "The Assessing Officer shall notify to the assessee by an order in writing the amount of the loss as computed by him for the purposes of section 111(1) or 112 or 113(2) or 115(1)," where two conditions are met: (a) in the course of assessment of the total income of any assessee, it is established that a loss has taken place; and (b) the assessee is entitled to have carried forward and set off such loss under the provisions of the said sections. The provision therefore covers the procedural duty of the Assessing Officer to give written intimation to the assessee regarding computed loss amounts that are relevant for the purposes of the specifically enumerated sections.

Interpretation

Legislative intent and interpretive principles indicated by the text: The text indicates a mandatory duty ("shall notify") on the Assessing Officer to communicate the computed amount of loss to the assessee when the loss is identified in assessment and is eligible for carry forward and set-off under the cited sections. The text implies a nexus between (i) establishment of loss in assessment and (ii) entitlement under the referenced sections as conditions for the notification duty. The document does not state additional legislative history, intent beyond the wording, or definitions explaining the precise meaning of "notify" or procedural mechanics; therefore, those aspects are Not stated in the document.

Exceptions/Provisos

No provisos, exceptions, thresholds, or carve-outs are included within the text shown. Any exceptions or procedural nuances are Not stated in the document.

Illustrations

• Example 1: An assessee undergoes assessment and the Assessing Officer establishes a loss. If the loss is eligible to be carried forward and set off u/s 112 (one of the listed sections), then the Assessing Officer "shall notify" the assessee by order in writing of the amount of loss as computed for the purposes of section 112. (Consistent with the text.)
• Example 2: An assessee has a loss identified in assessment and the loss is relevant for section 113(2). Under the provision the officer must issue a written order notifying the computed loss amount for the purposes of section 113(2). (Consistent with the text.)
• Example 3: In the Bill version only, if a loss is computed for the purposes of section 111(2) and the assessee is entitled to carry forward and set off such loss u/s 111(2), the Assessing Officer would be required to notify the assessee in writing of that computed amount. (Consistent with the Bill text.)

Interplay

The provision cross-references sections 111(1) (and in the Bill 111(2)), 112, 113(2) and 115(1). The text does not cite any Rules, Notifications or Circulars. Specific modes of interplay with other statutory or subordinate provisions (for example, time limits for issuing the order, consequences of failure to notify, appellate remedies, or the effect of the notification on procedural timelines) are Not stated in the document.

Differences Between the Two Provisions and Practical Impact

Identified textual differences:

• Reference to section 111(2): The Bill (Document 2) expressly lists "section 111(1) or (2) or 112" while the Act text (Document 1) lists "section 111(1) or 112" (i.e., the "(2)" reference to section 111 is absent).
• Marginal commentary: The Bill text includes a one-line explanatory note: "Clause 291 of the Bill seeks to provide for intimation of loss the purposes of carrying forward and set-off of such losses." The Act text does not include this note.
• Minor punctuation and formatting differences only; no other substantive variance is apparent from the texts provided.

Practical impact of each change:

• Inclusion of section 111(2) in the Bill broadens the listed purposes for which the Assessing Officer must notify the computed loss. If section 111(2) deals with a different tax outcome or sub-category of computation than section 111(1), its inclusion would require intimation of losses computed for that additional sub-purpose. Conversely, the absence of 111(2) in the Act narrows the explicit mandate to 111(1) only. Practical consequences include the potential for differing treatment of losses relevant to the omitted sub-section: assessees and officers may lack the explicit statutory trigger for an intimation in respect of losses falling solely within the omitted sub-section, possibly affecting procedural clarity and certainty in claims for carry forward and set-off. The document does not state legislative intent or consequences beyond the text.
• The explanatory line in the Bill clarifies legislative purpose (intimation for carrying forward and set-off) but does not alter operative text; its absence in the Act text removes that immediate legislative commentary from the statutory print. Practical impact: minor-users of the enacted Act have less in-text explanatory wording but the operative requirement remains.

Practical Implications

• Compliance and risk areas: The Assessing Officer has an explicit mandatory duty to notify assessees in writing of computed loss amounts relevant to the listed sections when the two preconditions are met. Failure to issue such orders where required could raise procedural challenges or disputes in practical administration; however, remedies or consequences are Not stated in the document.
• Record-keeping/evidence points: The provision's requirement of an "order in writing" implies the need for documented computation and written communication to the assessee. Officers and assessees should preserve the written order and supporting computation records to evidence entitlement for carry forward and set-off. Specific formats, timelines, or required content of the order are Not stated in the document.

Key Takeaways

• Clause/Section 291 mandates a written order by the Assessing Officer notifying the amount of loss computed for the purposes of specified sections where a loss is established in assessment and is eligible for carry forward and set-off under those sections.
• The Bill text explicitly included section 111(2); the enacted Act text shown omits that sub-section reference-this is the principal substantive divergence between the texts provided.
• The inclusion or omission of section 111(2) affects the explicit scope of the notification duty and may have procedural consequences for losses falling within that sub-section; the documents do not state legislative explanation of this change.
• The provision requires an "order in writing," which emphasises the need for documentary communication, but the document does not specify form, timing or consequences of non-compliance.
• Other interpretive and procedural details, including remedies, timelines and interaction with appellate processes, are Not stated in the document.

Full Text:

Section 291 Intimation of loss.