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balas (Chartered)     20 November 2013

Set off losses


My query is as under, request your response with CC to

Request to cite case judgement if any in this regard.

Background :Tax assessee has not filed any tax return and requires to
furnish same during inquiry proceeding.

Is the assessee eligible to claim losses incurred in derivative trading
as business losses and set off same against any other income for the
respective financial year(s) ?

(i.e. please note, not carry forward and set off losses in the future year but for the same assessment year)



 2 Replies

Vineet (Director)     10 December 2013

Yes, if it is proved during inquiry that both losses and income have actually been incurred. However, practical experience suggest that no AO worth his salt will ever bring loss on record. In appeal also, non filing of return will go against the assessee.

sreekanth (Assistant Manager- Taxation)     11 February 2014

section 80   restricts carry forward of losses to Future if the return  is not filed within Due date specified under section 139(1) 


However though return is not filed within due date, the Lossess can be set-off for the same year.. "But cannot be carry forwarded & set-off"

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