Where the assessee filed the original return under section 139(1), and not 139(3), and sought to revise it under 139(5), it was eligible to set off the losses under the head ‘profits and gains of business or profession’ or ‘capital gains’ by way of such revised return. However, it could not carry forward such losses since a carry forward of such losses requires the original return to be filed under section 139(3) and not 139(1). (AY. 2006-07) (ITA No. 237 of 2012; dt. 07.02.2019)
CIT v. Kerala State Construction Corporation Ltd. (2019) 177 DTR 411/ 308 CTR 841/ 267 Taxman 256 (Ker.)(HC)
S. 139 : Return of income – Return under 139(3) is necessary in order to carry forward losses under the head ‘business or profession’ or ‘capital gains’- Claim for carry forward and set off of busness loss is not allowed . . [S.45, 139(1), 139(3), 139(5)]