Question

empanelment of unabsorbed​

Answer 1

ITAT states that, the assessee filed return beyond the due date prescribed u/s 139(1) of the Act. In the return of income the assessee has declared loss and unabsorbed depreciation. As per the provision of section 139(3) to carry forward business loss u/s 72(1), assessee should have filed its return of income in time allowed u/s 139(1) of the Act. However, the above condition does not apply in case of unabsorbed depreciation in view of the provision of section 32(2) of the Act. The ld AO has correctly held that business loss is not allowable to be carried forward and has allowed only unabsorbed depreciation to be carried forward. The ld CIT (A) clearly referred to the provision of section 80 also The ld CIT (A) has also upheld the same view. In view of this, we do not find any infirmity in the order of the ld CIT (A) on this issue. Accordingly, the appeal raised by the AO are dismissed.