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Tax Publishers Allowability of carry forward of fresh long term capital losses by filing revised return within prescribed time *Facts:* Assessee an investing company had filed a return by offering interest income from under sources under section 139(1). Subsequently due to certain investigations by the department on certain share transactions they filed a revised return under section 139(5) on 02-02-2012 well within the prescribed time as per law. In the revised return they claimed long term capital losses of Rs. 206 crores for the first time. Revenue's plea was that the revised return is meant to correct, report genuine errors, omissions and to claim carry forward of losses a loss return under section 139(3) ought to have been filed in the first place. Raising a claim of carry forward of losses afresh via revised return contradicts the provisions of section 80. Accordingly the said long term capital losses claim was rejected. Assessee's counter was the revised file since filed within time replaces/substitutes the original return thus the carry forward of losses ought to have been granted. On appeal - Held against the assessee that raising fresh claim of losses via revised return is against the principles of section 80. Revised return itself is meant to correct only errors and omissions and not to completely bring in a fresh claim through back door means. Since the assessee has also not detailed the basis of the losses the ITAT refrained from adjudicating that aspect on merits. *Dissented:* Pr. CIT v. Babubhai Ramanbhai Patel (2017) 84 taxman.com 32 (Guj.) : 2017 TaxPub(DT) 2126 (Guj-HC) *Applied:* Kumar Jagdish Chandra Sinha v. CIT (1996) 220 ITR 67 (SC) : 1996 TaxPub(DT) 1086 (SC) - held that revised return can not be filed to cover up deliberate omission etc. in the original return. *Ed. Note:* Section 80 of the Act has a non obstante clause which prohibits claim of carry forward of such losses unless determined under section 139(3) of the Act. Section 139(3) in turn, makes the mandate of the law clear that the loss return must be filed within time permissible under section 139(1) of the Act. Section 139(5) is triggered if assessee discovers any omission or any wrong statement in the originally filed return. *Case:* RRPR Holding (P) Ltd. v. Dy. CIT TaxPub(DT) 3809 (Del-Trib)

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Allowability of carry forward of fresh long term capital losses by filing revised return within prescribed time

Facts:

Assessee an investing company had filed a return by offering interest income from under sources under section 139(1). Subsequently due to certain investigations by the department on certain share transactions they filed a revised return under section 139(5) on 02-02-2012 well within the prescribed time as per law. In the revised return they claimed long term capital losses of Rs. 206 crores for the first time. Revenue's plea was that the revised return is meant to correct, report genuine errors, omissions and to claim carry forward of losses a loss return under section 139(3) ought to have been filed in the first place. Raising a claim of carry forward of losses afresh via revised return contradicts the provisions of section 80. Accordingly the said long term capital losses claim was rejected. Assessee's counter was the revised file since filed within time replaces/substitutes the original return thus the carry forward of losses ought to have been granted. On appeal -

Held against the assessee that raising fresh claim of losses via revised return is against the principles of section 80. Revised return itself is meant to correct only errors and omissions and not to completely bring in a fresh claim through back door means. Since the assessee has also not detailed the basis of the losses the ITAT refrained from adjudicating that aspect on merits.

Dissented:

Pr. CIT v. Babubhai Ramanbhai Patel (2017) 84 taxman.com 32 (Guj.) : 2017 TaxPub(DT) 2126 (Guj-HC)

Applied:

Kumar Jagdish Chandra Sinha v. CIT (1996) 220 ITR 67 (SC) : 1996 TaxPub(DT) 1086 (SC) - held that revised return can not be filed to cover up deliberate omission etc. in the original return.

Ed. Note: Section 80 of the Act has a non obstante clause which prohibits claim of carry forward of such losses unless determined under section 139(3) of the Act. Section 139(3) in turn, makes the mandate of the law clear that the loss return must be filed within time permissible under section 139(1) of the Act. Section 139(5) is triggered if assessee discovers any omission or any wrong statement in the originally filed return.

Case: RRPR Holding (P) Ltd. v. Dy. CIT TaxPub(DT) 3809 (Del-Trib)