Claim of capital loss by furnishing of revised return is unsustainable

RRPR Holding Private Limited Vs DCIT (ITAT Delhi)

ITAT Delhi held that revised return cannot be filed to cover up deliberate omission etc. in the original return. Thus, claim of the Assessee towards incurring impugned capital loss and carryforward thereof vide the revised return is unsustainable.

Facts- The assessee is an Investment Holding Company set up to acquire and hold shares of NDTV Ltd. and its Group Cos. Pending completion of the assessment u/s. 143(3), the assessee filed revised return u/s. 139(5) of the Act. As per the revised return, the assessee claimed Long Term Capital Loss(LTCL) of Rs.206.25 crore arising on sale of shares together with Income Rs.4,17,005/- under the head “ income from other source” declared earlier in the original return.

AO also noted that as per section 139(3), for entitlement of carry forward of losses arising in the current assessment year, the loss return has to be necessarily filed within the time allowed for filing return under S 139(1) whereas in the instant case, the capital transactions resulting in huge loss has been claimed for the first time in the revised return filed beyond the time limit stipulated under S. 139(1) of the Act. The AO thus denied claim of LTCL for carry-forward and set off in subsequent assessment years.

CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.

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