The facts of the case are as under:
Sr No Particulars Amount in
Lacs
1. Returned loss 500
2. Addition made by the AO
600
3. Assessed Income 100

Case -1
As in the above case, returned loss has been converted into income, meaning thereby, returned loss of Rs 500 lacs has been fully reduced to nil and converted into income of Rs 100 lacs after assessment.
The assessee wants to exercise the second option as given in Rule 9(1)(ii), i.e to carry forward the reduced loss of Rs 500 lacs to nil and wants to pay the tax on balance amount of addition of Rs. 100 lacs (Rs. 600 lacs-Rs 500 lacs ).

Query 1 :
For the above situation, no schedule is available in Form no 1, then how the assessee can file form no 1, please clarify.

Case -2
In the aforesaid example, if the assessee is having a decision of higher court in his favour on the addition made by the AO which has also not been reversed so far, then as per second provisio to rule 9(2), one-half of the amount by which loss is reduced shall be considered for reduction.

Consequently, in the above example, 50% of addition works out to Rs 300 lacs and as such the assessee can carry forward the reduced loss of Rs. 200 lacs (Rs 500 lacs minus Rs 300 lacs) as per the aforesaid second provisio to Rule 9(2).

Query 2 :
Again for such a situation, no schedule is available in Form no 1, then how the assessee can file form no 1, please clarify.

Case -3
In the aforesaid example, if the assessee has got full relief form CIT (A)/ITAT/High Court on the addition of Rs 600 lacs made by the AO and IT Department has further filed appeal before ITAT/High Court/Supreme Court as the case may be which is pending as on 31.01.2020.

In the above case, the assessee is liable to pay 50% of disputed tax or carry forward the reduced loss by 50% as per section 3 read with section 1(j) of Act and also read with Rule 9 above.

Consequently, in the above example, 50% of addition works out to Rs 300 lacs and as such the assessee can carry forward the reduced loss of Rs. 200 lacs (Rs 500 lacs minus Rs 300 lacs) as per as per section 3 read with section 1(j) of Act and also read with Rule 9 above.

Query 3 :
Again for such a situation, no schedule is available in Form no 1, then how the assessee can file form no 1, please clarify.

Case-4

In the aforesaid example it is assumed that the assessee has to carry forward reduced loss in a particular assessment year under the scheme. Under such situation, benefit of such reduced carry forward loss of such assessment year is to be allowed in other assessment years where assessee is also going under this scheme for other subsequent years as well.

Query 4:

How the reduced loss carried forward in one particular assessment year under the aforesaid scheme is to be shown as Brought forward reduced loss in next assessment year and so on in form no 1 so as to set off the same in subsequent assessment year or years to work out disputed tax, if any, under the said scheme, please clarify.