Case Law Details
Brief of the case:
ITAT held in ITO Vs Ramesh Kumar Jajodia that if the assessee had filed its original return u/s 139(1) but forgot to claim the speculative loss in its original return and filed revised return u/s 139(5) and claimed the loss in its revised return then the speculative loss should be allowed to be carried forward.
Moreover if there was clerical mistake in filling up the ITR form then then the assessee should not be deprived of the benefit of carrying forward of loss. As per provision of section 139(9), where a return furnished by the assessee was considered defective, the assessing officer may intimate the defect to the assessee giving him opportunity to remove the same within fifteen days or further time allowed. So AO should have given the assesse opportunity to rectify its return.
Facts of the case:
The assessee had filed its return of income before due date mentioned u/s 139(1) but forgot to claim the speculative loss so it filed revised return within the date mentioned u/s 139(5) and also carried forward the speculative loss but AO disallowed the same on the plea that loss could only be carried forward only if the return was filed u/s 139(1) and loss was claimed under that return and in the above case loss was claimed in the return filed u/s 139(5) so loss could not be allowed to be carried forward.
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