Section 139(3): Loss return filed under Income Tax Act, 1961

By | June 30, 2015

A return filed by an assessee indicating the amount of loss incurred is called Loss return. Any person who has incurred any loss in any previous year under the heads of “Profits & gains from Business or Profession” or “Capital Gains” and claims that the loss or any part should be carried forward, then he may submit the loss return before the due date of filing the return of income. All the provisions of the act shall apply as if the return were furnished u/s 139(1).

However, the loss under the head “income from house property” can be carried forward if return of income is furnished after the due date. Unabsorbed depreciation can be carried forward even if the Return of Income is furnished after the due date specified in section 139 (1).

Related Cases:

S. 80, 139(1), 139(3) & 139(5) of IT Act, 1961—Loss—As per the provisions of Sub-section (5) of S. 139, in both the situations where the assessee has filed the return of positive income as well as return of loss at the first instance as per the time-limit prescribed and subsequently, files the revised return then the revised return is treated as valid return. Since the assessee has filed its original return declaring the positive income and, therefore, revised return is valid return also and the assessee is entitled to carry forward of long-term capital loss—Ramesh Shah vs. ACIT (2012) 143 TTJ 166 (ITAT-Mum)

S. 32(2), 72, 80 & 139(3) of IT Act, 1961—Loss—S. 139(3) would have no application, where the loss is determined while giving effect to the orders of the appellate authorities. S. 139(3) would be applicable only where the assessee himself furnished the return disclosing the loss—ACIT vs. Mehsana District Co-op Milk Producers Union Ltd. (2012) 145 TTJ 107 (ITAT-Ahd.)

S. 119(2)(b), 139(3) of  IT Act, 1961—Return—The assessee is under an obligation u/s 44AB to get its accounts audited and to file the audit report with the return. In the present matter, the assessee filed its return u/s 139(3) on March 28, 2002 whereas the last date of filing the return was Nov. 30, 2000. Therefore, the assessee moved application to CBDT for condemnation of delay u/s 119(2)(b) of the Act. S. 119(2)(b) empowers the CBDT to consider if it is desirable or expedient so to do for avoiding genuine hardship to an assessee to admit an application for condemnation of delay. Since same has not been considered by the CBDT and, therefore, matter is remanded to CBDT  to consider the explanation of assessee and pass appropriate order after providing due opportunity to the assessee—Madhya Pradesh State Electricity Board  vs. U.O.I. (2011) 331 ITR 50 (MP)

S. 32(2), 72, 80 & 139(3) of IT Act, 1961—Loss—S. 139(3) would have no application, where the loss is determined while giving effect to the orders of the appellate authorities. S. 139(3) would be applicable only where the assessee himself furnished the return disclosing the loss—ACIT vs. Mehsana District Co-op Milk Producers Union Ltd. (2012) 145 TTJ 107 (ITAT-Ahd.)

Reference:

As Per Section 139(3), of the Income Tax Act, 1961-

Return of income

139. (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- section (1) [or sub-section (3)] of section 74, [or sub-section (3) of section 74A], he may furnish, within the time allowed under sub-section (1), a return of loss in the prescribed form and verified in the prescribed manner and containing such other particulars as may be prescribed, and all the provisions of this Act shall apply as if it were a return under sub-section (1).

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