Paramsukh Infradevelopers LLP Vs ITO (ITAT Agra)
The Income Tax Appellate Tribunal (ITAT), Agra Bench, has ruled in favor of an assessee, a Limited Liability Partnership (LLP), overturning a decision by the Commissioner of Income-tax (Appeals) [CIT(A)] and the Central Processing Centre (CPC), Bengaluru, to deny the carry forward of a business loss of Rs. 16,96,446/- for the assessment year 2019-20. The core of the dispute revolved around the due date for filing the income tax return and whether the LLP’s accounts were “required to be audited” under relevant laws.
Background of the Case
The assessee filed its income tax return on September 17, 2019, declaring a business loss of Rs. 16,96,486/-. The CPC processed this return under Section 143(1) of the Income-tax Act, 1961, and disallowed the carry forward of the loss. The CPC’s reasoning was that the return was filed belatedly, beyond the prescribed due date of August 31, 2019 (the extended due date from July 31, 2019). Consequently, the income was assessed at Rs. Nil, and the business loss was denied for carry forward under Section 139(3) of the Act, which prohibits the carry forward of losses if a return is filed after the due date specified in Section 139(1).
