Re: Carried forward loss

Sir

We have filed return of income for AY 2013-14 showing Loss as per Normal income and also Book loss per 115JB of the Act.

In the order passed u/s 143(3 ) certain expenses claimed as revenue expenditure was disallowed and resulting Loss claimed was reduced.

we have filed appeal to CIT (A) which was not disposed off till 31.01.2020.

We taken full set off of all carried forward loss and also loss claimed in AY 2013-14 in AY 2016-2017. However, we have incurred further loss in AY.2017-18….till 2019-20.

Now we want to avail VSVS .

QUERY

1) are we eligible to avail VSVS.

2) We are opting for reduction in carried forward Loss instead of paying Tax….so whether we have to pay tax in AY 2016 -17 where we have set off all carried loss or we have to simply reduced amount from carried forward loss as on date.

3) In form whether we have to fill Schedule D only or any other schedule ?

pls share your valuable view for the same.

Yes, since there is an appeal pending as on the specified date, you are eligible for the Scheme for AY 2013-14.

As per FAQ No. 53 of Circular No. 9 of dated April 22, 2020; in a case where the dispute in relation to an assessment year relates to reduction of reduction of loss, the appellant shall have an option either to:

(i)        include the of tax related to loss in the amount of disputed tax and carry forward the loss amount

(ii)       to carry forward the loss.

Rule 9 of VSV Rules, 2020 prescribes the manner of computing disputed tax in cases where loss is reduced.

It seems Schedule D is applicable to  you hence you may fill only schedule D. Assuming certain mistake in  filling the form your form will be rejected . If there is an defect in the Form the Designated Authority  has to provide an opportunity to rectify the defects or an opportunity to  file  new form . Whole object being to settle the dispute the Tax department will not reject the application merely on technical grounds .   

 

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