RETURN OF LOSS [SECTION 139(3)]

RETURN OF LOSS [SECTION 139(3)]

(1) This section requires the assessee to file a return of loss in the same manner as in the case of return of income within the time allowed under section 139(1).

Section 80 requires mandatory filing of return of loss under section 139(3) on or before the due date

specified under section 139(1) for carry forward of the following losses

(a) Business loss under section 72(1)

(b) Speculation business loss under section 73(2)

(c) Loss from specified business under section 73A(2)

(d) Loss under the head “Capital Gains” under section 74(1)

(e) Loss from the activity of owning and maintaining race horses under section 74A(3)

(2) Consequently, section 139(3) requires filing of return of loss mandatorily within the time allowed under section 139(1) for claiming carry forward of the losses mentioned in (2) above.

(3) However, loss under the head “Income from house property” under section 71B and unabsorbed depreciation under section 32 can be carried forward for set-off even though return of loss has not been filed before the due date.

(4) A return of loss has to be filed by the assessee in his own interest and the non-receipt of a notice from the Assessing Officer requiring him to file the return cannot be a valid excuse under any circumstances for the non-filing of such return.