ITAT allows claim of brought forward loss and current year loss adjusted by CPC

It was stated before the ITAT that that in the return of income filed in Form no. ITR- 6 in Schedule CFL, the assessee has furnished “details of loss to be carried forward to future years” totalling to Rs. 82,89,050/- which included the brought forward losses from earlier years totalling to Rs. 75,33,200/- and balance for current year. It was further stated by the Learned Council of the Assessee that in the return processed u/s 143(1) of the Act such claim of brought forward loss and current year loss was not allowed and for the proposed adjustments Centralized Processing Centre did not provide any opportunity before making the said adjustments as provided under the proviso to Section 143(1)(a) of the Act.

ITAT agreed that reasonable opportunity was not provided to the assessee before declining the claim and thus, the claim of the assessee was restored. ITAT allowed the claim of brought forward loss to be carried forward to future years as well as loss of current year to be carried forward for set off in the future years and instructed the ld. CIT(A) for necessary adjudication and to pass a speaking order on this issue. Further, the assessee is also directed to furnish all relevant details which it had mentioned in the written submission placed before ld. CIT(A) relating to disallowance of losses.

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