Project Revolt LLP Vs ITO (ITAT Mumbai)
Summary: The appeal was filed by Project Revolt LLP against the order dated 13.03.2026 passed by the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi, arising from an order dated 18.02.2022 under section 154 of the Income-tax Act, 1961 for AY 2017-18. The solitary issue before the Tribunal was whether the assessee’s return filed on 11.09.2017 was within the due date prescribed under section 139(1) and, consequently, whether the assessee was entitled to carry forward its business loss of ₹26,44,861.
The assessee was a Limited Liability Partnership constituted under the Limited Liability Partnership Act, 2008. For the financial year ended 31.03.2017, its turnover was ₹48,39,850. Since the turnover exceeded ₹40 lakh, its accounts were required to be audited under Rule 24(8) of the Limited Liability Partnership Rules, 2009. The accounts were actually audited and the audit report was obtained on 01.08.2017. The audited balance sheet, profit and loss account and audit report were available on record, and the assessee had disclosed the audit under the “Audit Details” column of its return.
The assessee filed its return for AY 2017-18 on 11.09.2017 declaring an aggregate loss of ₹27,68,692, consisting of business loss of ₹26,44,861 and unabsorbed depreciation of ₹1,23,831. While processing the return under section 143(1), the CPC proceeded on the basis that the applicable due date was 05.08.2017, treating the assessee as a non-audit case. Since the return was filed on 11.09.2017, it was treated as belated and carry forward of the business loss was denied under section 80. The unabsorbed depreciation of ₹1,23,831 was permitted to be carried forward.
