KAMALDEEP CONSTRUCTION,PUNE vs. THE ITO WARD-5(2), PUNE

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ITA 2887/PUN/2025Status: DisposedITAT Pune28 April 2026AY 2018-194 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that once a valid return claiming loss was filed for AY 2017-18 within the prescribed time, such loss can be carried forward and set off against income in subsequent years, even if the return for the subsequent year was not filed u/s 139(1).

What were the facts?

The assessee, a partnership firm, did not file a regular return for AY 2018-19 but filed a return in response to a notice u/s 148, claiming set off of brought forward loss from AY 2017-18. The Assessing Officer and CIT(A) denied this claim.

What were the issues?

Whether a brought forward loss can be set off in a subsequent year if the return for that subsequent year is not filed within the time prescribed by Section 139(1), provided the loss was validly claimed in the year it was incurred.

Which sections of the Income-tax Act were involved?

Section 139(1),Section 147,Section 148,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCHES “A”, PUNE

Before: DR.MANISH BORAD & SHRI VINAY BHAMORE

For Respondent: Shri Aviyogi Ambadkar
Hearing: 23.03.2026Pronounced: 28.04.2026

PER DR. MANISH BORAD, ACCOUNTANT MEMBER :

The captioned appeal at the instance of assessee pertaining to A.Y. 2018-19 is directed against the order dated 19.09.2025 of National Faceless Appeal Centre (NFAC) Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of Assessment Order dated 04.03.2024 passed u/s.147 r.w.s. 144B of the Act.

2.

The only grievance of the assessee is that ld.CIT(A) erred in confirming the action of the Assessing Officer not allowing set off of brought forward loss at Rs.4,73,934/- on the ground that assessee has not furnished return of income for the year under consideration within the prescribed time limit provided u/s.139(1) of the Act.

2 Kamaldeep Constructions

3.

We have heard the rival contentions and perused the record placed before us. We note that the assessee is a partnership firm engaged in construction business. Assessee has not filed regular return of income for A.Y. 2018-19. Based on the information about certain transactions carried out during the year, valid notice u/s.148 of the Act issued upon the assessee. Assessee filed the return in response to notice u/s.148 of the Act declaring income of Rs.97,41,900/- after claiming set off of brought forward loss at Rs.4,73,934/-, however ld. Assessing Officer denied the said claim on the ground that assessee firm has not filed return of income u/s.139(1) of the Act. Ld.CIT(A) has also confirmed the action of the Assessing Officer.

4.

Before us, Ld. Counsel for the assessee has submitted that the year in which the assessee has incurred loss is A.Y. 2017-18 and as the return has been filed for A.Y. 2017-18 u/s.139(1) of the Act, therefore the claim of brought forward loss deserves to be allowed. We observe that for the purpose of claiming a valid loss for a particular year and carrying it forward to be set off in the subsequent years the assessee has to furnish the return of income for that particular year within the prescribed time limit provided u/s.139(1) of the Act. In the instant case, loss has been incurred during A.Y. 2017-18 and the return of income for A.Y. 2017-18 has been e-filed on 22.07.2017 claiming loss of Rs.4,73,934/-. The condition for filing the return of income u/s.139(1) is applicable where the assessee incurs loss for a particular year and set off during the year or carries it forward. However, once a valid claim of loss has been made by filing the return u/s.139(1) of the Act, such loss can be carried forward and set off against the income for subsequent period as per the provisions of Income-tax Act, 1961. In the instant case, ld.

3 Kamaldeep Constructions

Assessing Officer has denied set off of brought forward loss made by the assessee in A.Y. 2018-19 on account of non-furnishing of return for A.Y. 2018-19 u/s.139(1) of the Act. However, ld. Assessing Officer failed to consider the fact that for A.Y. 2017-18 when the alleged loss was actually incurred, valid return of income u/s.139(1) of the Act has been furnished. Therefore once a valid loss has been claimed for A.Y. 2017-18 the same can be set off against the income for A.Y. 2018-19 inspite of the return for A.Y. 2018-19 being not furnished u/s.139(1) of the Act. We therefore direct the Assessing Officer to allow the claim of brought forward loss at Rs.4,73,934/-. Finding of ld.CIT(A) is reversed and the effective grounds of appeal raised by the assessee are allowed.

5.

In the result, the appeal of the assessee is allowed.

Order pronounced on this 28th day of April, 2026. (VINAY BHAMORE) ACCOUNTANT MEMBER पुणे / Pune; दिन ांक / Dated : 28th April, 2026. Satish

Satish Kumar Madishetty 4 Kamaldeep Constructions

आदेश की प्रतिलिपि अग्रेपिि / Copy of the Order forwarded to : अपील र्थी / The Appellant. 1. प्रत्यर्थी / The Respondent.

2.3.

The Pr. CIT concerned. विभ गीय प्रतितनधि, आयकर अपीलीय अधिकरण, “A” बेंच, 4. पुणे / DR, ITAT, “A” Bench, Pune. ग र्ड फ़ इल / Guard File. 5. आिेश नुस र / BY ORDER,

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