Re: Filing of DTVSV as per Rule 9
As per rule 9 of the DTVSV scheme, the assessee having carried forward loss has two options –
1. Pay tax now on the amount by which loss is reduced and carry forward the whole amount by ignoring the amount of reduction
OR
2. carry forward the reduced amount of loss and not pay any tax now.
In our case, the assessee has a brought forward business loss, which is further carried forward due to no set-off available. While the current year business loss gets set off with CY LTCG. Thereby, having no current year business loss outstanding.
The AO contends that the assessee having brought forward loss is not eligible for the second option (because that option is available only in case of current year loss that is unabsorbed), and there remains a +ve income after PGBP addition made by order.
Kindly help and suggest if the AO’s contention is valid? and if so, where is the same mentioned in rules of DTVSV scheme.
Thankyou.
Please refer Q No 53 and Ans . regarding the carried forward of loss.
It seems the interpretation given the AO is correct . The only remedy with the assessee is file Writ before the High Court , after receipt of the intimation from the Designated Authority .
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