Dhiren Ramanlal Shah Vs ITO (ITAT Mumbai)
ITAT Mumbai has ruled in the case of Dhiren Ramanlal Shah vs. ITO, allowing an individual partner to carry forward losses and get relief from late fees. The ruling hinges on the fact that the partner’s firm had to file an audit report, extending the partner’s own filing deadline.
In a recent ruling, the Income Tax Appellate Tribunal (ITAT) in Mumbai has sided with a taxpayer, Dhiren Ramanlal Shah, allowing him to carry forward a capital loss and directing the deletion of a late filing fee. The case revolved around the interpretation of the due date for filing an income tax return for an individual who is a partner in a firm required to file an audit report under Section 92E of the Income-tax Act, 1961.
The taxpayer, Dhiren Ramanlal Shah, filed his return for the assessment year 2022-23 on November 26, 2022. He declared a taxable income and sought to carry forward a long-term capital loss of over Rs. 3.5 crore. However, the Centralised Processing Centre (CPC), Bangalore, disallowed the carry forward of the loss and levied a late fee of Rs. 5,000, arguing that the return was filed after the regular due date.
