ITAT allows claim of set off of brought forward long term capital loss when the assessee has filed ITR on time

This appeal of the assessee is against the order passed by the learned Commissioner of Income Tax (Appeals) for not allowing off of brought forward long term capital loss of Rs 1,53,158 of Asst Year 2011-12.

In this matter, the impugned disallowance was made in the course of processing of return 143(1) by the Assessing Officer (CPC) on the short ground “Disallowance of loss claimed, as the Income Tax Return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-section (1) of section 139 –u/s 143(1)(a)(iii)” and the assessee has disputed this claim by making a submission through the e-portal to the effect that “Return of Income for AY 2011-12 was filed on 31/07/2011 vide receipt no 0621002696, with ITO, Ward 6(2), Ahmedabad. The return of Income was filed in time. Kindly correct your database. The set off is rightly claimed by me while filing ROI for AY 2019-20”. The plea of the assessee is summarily dismissed by the Assessing Officer (CPC) by observing that “disagreed”. A copy of the screenshot showing the objection raised by the Assessing Officer (CPC), the reply given by the assessee, and the disposal of the said reply by the Assessing Officer (CPC) was also filed before us. The Assessing Officer (CPC) thus proceeded ahead with declining set off of the loss carried forward. Aggrieved by the adjustment so made by the Assessing Officer (CPC), assessee carried the matter in appeal before the learned CIT(A). The learned CIT(A) dismissed the appeal filed by the assessee. Aggrieved, assessee preferred an appeal before the tribunal.

ITAT observed that as evident from a copy of the income tax return for the assessment year 2010-11 at page 9 of the paper book, that the assessee had duly filed the income tax return, for the assessment year 2010-11, well within the time permitted u/s. 139 (i) i.e. on 31st July 2011. In this view of the matter, the very foundation of impugned adjustment under section 143(1) is wholly unsustainable in law. Therefore, it vacate the impugned action of the Assessing Officer to allow the set off of loss brought forward from the assessment year 2010-11. The assessee, accordingly, get the relief for set off of long term capital loss of Rs. 1,53,158/-.

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