You are all well aware
that if a return is filed beyond the due date, any loss suffered by the
assessee cannot be carried forward for set off in the following years. It is important to understand
that the responsibility of filing the ITR lies with the taxpayer and not with a
Chartered Accountant.
Consider a scenario
where an assessee files their ITR after the due date, citing that their
Chartered Accountant was preoccupied with their sister's wedding. Will the loss
in such a case is allowed to be carried forward though filed belatedly? Read
the interesting judgment by the Bombay High Court.
The Bombay High Court recently has condoned a delay in filing a loss return by
a company M/s ADCC Infocom Private Limited. The company had suffered a loss
during the financial year 2019-2020 and was required to file its return within
the specified due date. However, the return was filed 36 days after the due
date.
However, in this case,
the Bombay High Court accepted the petitioner's argument of genuine hardship
and condoned the delay in filing the return.
The company cited the COVID-19 pandemic and the heavy workload
of its Chartered Accountant as reasons for the delay. Additionally, the
Chartered Accountant's sister's wedding, which took place on February 16, 2021,
further contributed to the delay as she was occupied with the arrangements and
attending to relatives.
So the company's loss
can still be carried forward and set off against future income.
It’s an Important judgment
to keep in our memory.
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