MTITANIUM APARTMENTS PVT LTD,MUMBAI vs. DY. CIT CIRCLE 1(2)(1), MUMBAI

2.1 Before the Ld. CIT(A), Before the Ld. CIT(A), the assessee’s explanation for the delay of the assessee’s explanation for the delay of 10 days rests on medical exigency suffered by Ms. Vaishnavi 10 days rests on medical exigency suffered by Ms. Vaishnavi 10 days rests on medical exigency suffered by Ms. Vaishnavi Guduri, the person responsible for filing the return of income. Guduri, the person responsible for filing the return of income. Guduri, the person responsible for filing the return of income. Medical records evidencing hospitalization and surgical procedure Medical records evidencing hospitalization and surgical procedure Medical records evidencing hospitalization and surgical procedure have been placed on re have been placed on record. The Ld. CIT(A), however, rejected this cord. The Ld. CIT(A), however, rejected this plea by relying on the binding pronouncement of the Hon’ble plea by relying on the binding pronouncement of the Hon’ble plea by relying on the binding pronouncement of the Hon’ble Supreme Court in Wipro Ltd. v. DCIT Wipro Ltd. v. DCIT [2022] 140 taxmann.com 223 [2022] 140 taxmann.com 223 (SC), wherein it has been held in clear and unambiguous terms that (SC), wherein it has been held in clear and unambiguous terms that (SC), wherein it has been held in clear and unambiguous terms that the requirement under the requirement under section 139(3) read with section 80 of the section 139(3) read with section 80 of the Act—namely, that a return of loss must be furnished within the namely, that a return of loss must be furnished within the namely, that a return of loss must be furnished within the time prescribed under section 139(1) to entitle the assessee to carry time prescribed under section 139(1) to entitle the assessee to carry time prescribed under section 139(1) to entitle the assessee to carry is mandatory and not directory. forward such loss—is and not directory. The relevant finding of the Ld. CIT(A) is reproduced as under: d. CIT(A) is reproduced as under:

“7. Decision: :- The appellant has filed the Rol for AY-2024 2024-25 on 22-10-2024 admitting a total income of Rs. 1,85,60,980, after 2024 admitting a total income of Rs. 1,85,60,980, after 2024 admitting a total income of Rs. 1,85,60,980, after claiming set-off of brought forward loss of Rs.1,10,2,515. The off of brought forward loss of Rs.1,10,2,515. The off of brought forward loss of Rs.1,10,2,515. The case was processed U/s. 143(1) a case was processed U/s. 143(1) and the total income was nd the total income was determined as Rs.2,95,89,490, by denying the claim of determined as Rs.2,95,89,490, by denying the claim of determined as Rs.2,95,89,490, by denying the claim of adjustment of brought forward losses, on account of the return of adjustment of brought forward losses, on account of the return of adjustment of brought forward losses, on account of the return of the previous year of which Set the previous year of which Set-off of business loss is claimed off of business loss is claimed was furnished beyond the due date specified U/s. was furnished beyond the due date specified U/s. 139(1). The 139(1). The details given as per the intimation U/s. 143(1) is given as under, details given as per the intimation U/s. 143(1) is given as under, details given as per the intimation U/s. 143(1) is given as under,

7.1. Aggrieved against the said order, the appellant has preferred 7.1. Aggrieved against the said order, the appellant has preferred 7.1. Aggrieved against the said order, the appellant has preferred the present appeal. In this regard, the appellant has made the the present appeal. In this regard, the appellant has made the the present appeal. In this regard, the appellant has made the following submissions. following submissions. "The appellant is a do "The appellant is a domestic private limited company and it has mestic private limited company and it has filed its Return of Income for said Asst. Year. 2024 filed its Return of Income for said Asst. Year. 2024 filed its Return of Income for said Asst. Year. 2024-25 on 22.10.2024 vide Acknowledgement No. 628094621221024, 22.10.2024 vide Acknowledgement No. 628094621221024, 22.10.2024 vide Acknowledgement No. 628094621221024, declaring Total Income at Rs. 1,85,60,980 & Net Tax Liability at declaring Total Income at Rs. 1,85,60,980 & Net Tax Liability at declaring Total Income at Rs. 1,85,60,980 & Net Tax Liability at Rs.51,63,664. The said return has bee Rs.51,63,664. The said return has been processed by CPC n processed by CPC-ITD, determining Total Income at Rs.2,95,89,490 & Net Tax Liability determining Total Income at Rs.2,95,89,490 & Net Tax Liability determining Total Income at Rs.2,95,89,490 & Net Tax Liability at Rs.82,31,797, thereby determining tax demand payable at at Rs.82,31,797, thereby determining tax demand payable at at Rs.82,31,797, thereby determining tax demand payable at Rs.31,35,750. The CPC Rs.31,35,750. The CPC-ITD has passed Intimation Order dated ITD has passed Intimation Order dated 25.03.2025, u/s. 143(1) of the Income Tax Act, 196 25.03.2025, u/s. 143(1) of the Income Tax Act, 1961, disallowing 1, disallowing the set-off of brought forward business losses of Rs. 1, 10,28,515 off of brought forward business losses of Rs. 1, 10,28,515 off of brought forward business losses of Rs. 1, 10,28,515 claimed of A. Y.2023 claimed of A. Y.2023-24, on account of the return of previous year 24, on account of the return of previous year of which set- -off of business losses is claimed was furnished off of business losses is claimed was furnished beyond the due date specified u/s. 139(1) of t beyond the due date specified u/s. 139(1) of the Act. The due date for filing return of income for A.Y.2023 The due date for filing return of income for A.Y.2023 The due date for filing return of income for A.Y.2023-24 was 31.10.2023 and return of income was filed on 10.11.2023, i.e. 31.10.2023 and return of income was filed on 10.11.2023, i.e. 31.10.2023 and return of income was filed on 10.11.2023, i.e. the said return of income was filed belatedly by 10 days, due to the said return of income was filed belatedly by 10 days, due to the said return of income was filed belatedly by 10 days, due to unforeseen medical issues suffered by the person (Mrs. unforeseen medical issues suffered by the person (Mrs. unforeseen medical issues suffered by the person (Mrs. Vaishnavi Guduri) who files the Return of Income of the Assessee navi Guduri) who files the Return of Income of the Assessee navi Guduri) who files the Return of Income of the Assessee Company and the said person underwent through urgent and Company and the said person underwent through urgent and Company and the said person underwent through urgent and immediate medical procedures and surgery in last days of immediate medical procedures and surgery in last days of immediate medical procedures and surgery in last days of October 2023 due to severe and unbearable pain on account of October 2023 due to severe and unbearable pain on account of October 2023 due to severe and unbearable pain on account of Kidney stones. As soo Kidney stones. As soon as the said person recovered and n as the said person recovered and resumed the office, she immediately filed the aforesaid Return of resumed the office, she immediately filed the aforesaid Return of resumed the office, she immediately filed the aforesaid Return of Income for A. Y. 2023 Income for A. Y. 2023-24. The said person was diagnosed with Kidney Stones, later she The said person was diagnosed with Kidney Stones, later she The said person was diagnosed with Kidney Stones, later she underwent surgical procedure named cystoscopy i.e. removal of underwent surgical procedure named cystoscopy i.e. removal of underwent surgical procedure named cystoscopy i.e. removal of kidney stones stones stones via via via laser laser laser operation, operation, operation, under under under the the the supervision/instructions supervision/instructions supervision/instructions of of of Dr. Dr. Dr. Hitesh Hitesh Hitesh Jain Jain Jain (Urologist (Urologist (Urologist & & & Oncologist) Oncologist) Oncologist) in in in Shushrusha Shushrusha Shushrusha Hospital, Hospital, Hospital, Dadar, Dadar, Dadar, Mumbai Mumbai Mumbai on on on 02.11.2023. She was admitted to said hospital for surgery and 02.11.2023. She was admitted to said hospital for surgery and 02.11.2023. She was admitted to said hospital for surgery and was there about 2 days in hospital. Subsequent was there about 2 days in hospital. Subsequently, she was on ly, she was on bed rest for about a weeks' time and resumed office only after bed rest for about a weeks' time and resumed office only after bed rest for about a weeks' time and resumed office only after one week. Your Your Your appellant appellant appellant submits submits herewith submits herewith herewith the copies the copies the copies of medical of of medical medical prescriptions, diagnostic reports, hospital bills, medical invoices, prescriptions, diagnostic reports, hospital bills, medical invoices, prescriptions, diagnostic reports, hospital bills, medical invoices, surgical procedure papers, hospital admission surgical procedure papers, hospital admission and discharge and discharge card, post-surgery diagnostic reports etc. surgery diagnostic reports etc. Your appellant submits that the disallowance made of set Your appellant submits that the disallowance made of set Your appellant submits that the disallowance made of set-off of brought forward business losses ought to be allowed, considering brought forward business losses ought to be allowed, considering brought forward business losses ought to be allowed, considering the facts and circumstances of the case and principle of natural the facts and circumstances of the case and principle of natural the facts and circumstances of the case and principle of natural justice". 7.2. The submissions of the appellant are considered. In the 7.2. The submissions of the appellant are considered. In the 7.2. The submissions of the appellant are considered. In the present case, the appellant has claimed Set present case, the appellant has claimed Set-off of brought off of brought forward loss of Rs. 1,10,28,515 pertaining to AY 2023 forward loss of Rs. 1,10,28,515 pertaining to AY 2023 forward loss of Rs. 1,10,28,515 pertaining to AY 2023-24 in the Rol filed for AY 2024 Rol filed for AY 2024-25. However, the Rol for AY 2023 25. However, the Rol for AY 2023-24, claiming the Loss of Rs. 1,10,28,515 was filed on 10 g the Loss of Rs. 1,10,28,515 was filed on 10 g the Loss of Rs. 1,10,28,515 was filed on 10-11-2023 beyond the due date for filling Rol U/s.139(1) i.e., 31 beyond the due date for filling Rol U/s.139(1) i.e., 31 beyond the due date for filling Rol U/s.139(1) i.e., 31-10-2023. Hence, the same was not allowed by CPC U/s.143(1). In this Hence, the same was not allowed by CPC U/s.143(1). In this Hence, the same was not allowed by CPC U/s.143(1). In this regard, the relevant provisions of Section 80 is reproduced as regard, the relevant provisions of Section 80 is reproduced as regard, the relevant provisions of Section 80 is reproduced as under, Notwithstanding anything contained in this Chapter, no loss tanding anything contained in this Chapter, no loss tanding anything contained in this Chapter, no loss which has not been determined in pursuance of a return filed in which has not been determined in pursuance of a return filed in which has not been determined in pursuance of a return filed in accordance with the provisions of sub accordance with the provisions of sub-section (3) of section 139, section (3) of section 139, shall be carried forward and set off under sub shall be carried forward and set off under sub-section (1) of section (1) of section 72 or sub r sub-section (2) of section 73 or sub-section (2) of section (2) of section 73A or sub section 73A or sub-section (1) or sub-section (3) of section 74 or section (3) of section 74 or sub-section (3) of section 74A. section (3) of section 74A. 7.3. As per provisions of Section 139(3) 7.3. As per provisions of Section 139(3) "(3) If any person who has sustained a loss in any previous ye "(3) If any person who has sustained a loss in any previous ye "(3) If any person who has sustained a loss in any previous year under the head "Profits and gains of business or profession" or under the head "Profits and gains of business or profession" or under the head "Profits and gains of business or profession" or under the head "Capital gains" and claims that the loss or any under the head "Capital gains" and claims that the loss or any under the head "Capital gains" and claims that the loss or any part thereof should be carried forward under sub part thereof should be carried forward under sub- section (1) of section (1) of section 72, or sub section 72, or sub-section (2) of section 73, or sub-section section (2) of section 73A or sub section 73A or sub-section (1) or sub-section (3) of section 74, or section (3) of section 74, or sub-section (3) of section 74A, he may furnish, within the time section (3) of section 74A, he may furnish, within the time section (3) of section 74A, he may furnish, within the time allowed under sub allowed under sub-section (1), a return of loss in the prescribed section (1), a return of loss in the prescribed form and verified in the prescribed manner and cont form and verified in the prescribed manner and containing such aining such other particulars as may be prescribed, and all the provisions of other particulars as may be prescribed, and all the provisions of other particulars as may be prescribed, and all the provisions of this Act shall apply as if it were a return under sub this Act shall apply as if it were a return under sub-section (1)". section (1)". 7.4. Therefore, it is clearly evident that, in order to claim set 7.4. Therefore, it is clearly evident that, in order to claim set 7.4. Therefore, it is clearly evident that, in order to claim set-off of carry-forward losses, the Rol for the forward losses, the Rol for the previous year in which the previous year in which the loss was arrived has to be filed within the time allowed loss was arrived has to be filed within the time allowed loss was arrived has to be filed within the time allowed U/s.139(1). However, in the present case, the appellant has filed U/s.139(1). However, in the present case, the appellant has filed U/s.139(1). However, in the present case, the appellant has filed belatedly with a delay of 10 days. In this regard, the appellant belatedly with a delay of 10 days. In this regard, the appellant belatedly with a delay of 10 days. In this regard, the appellant has stated certain medical reasons of th has stated certain medical reasons of the person who is e person who is entrusted with filling Rol. However, the same is not acceptable. entrusted with filling Rol. However, the same is not acceptable. entrusted with filling Rol. However, the same is not acceptable. Since, as per the provisions of the Act, it is mandatory to file the Since, as per the provisions of the Act, it is mandatory to file the Since, as per the provisions of the Act, it is mandatory to file the Rol within the due date as per the Act in Rol within the due date as per the Act in-order to claim, the order to claim, the adjustment of Set adjustment of Set-off of brought forward losses. In this regard, ses. In this regard, reliance is placed on the decision of Hon'ble Supreme Court in the reliance is placed on the decision of Hon'ble Supreme Court in the reliance is placed on the decision of Hon'ble Supreme Court in the case of Wipro Ltd. reported in 140 taxmann.com 223, wherein the case of Wipro Ltd. reported in 140 taxmann.com 223, wherein the case of Wipro Ltd. reported in 140 taxmann.com 223, wherein the court has held that, "the time limit to file Rol to claim set court has held that, "the time limit to file Rol to claim set court has held that, "the time limit to file Rol to claim set-off of carry forward is mandatory and not carry forward is mandatory and not directory". Accordingly, the directory". Accordingly, the court has held that, the revised return filed by assessee under court has held that, the revised return filed by assessee under court has held that, the revised return filed by assessee under section 139(5) can only substitute its original return filed under section 139(5) can only substitute its original return filed under section 139(5) can only substitute its original return filed under section 139(1) and cannot transform it into a return under section section 139(1) and cannot transform it into a return under section section 139(1) and cannot transform it into a return under section 139(3), in order to avail ben 139(3), in order to avail benefit of carrying forward or set efit of carrying forward or set-off of any loss under any loss under section 80.”

5.1 In the present case, there is no dispute that the return for In the present case, there is no dispute that the return for In the present case, there is no dispute that the return for assessment year 2023 assessment year 2023-24 was filed belatedly by 10 days. T 24 was filed belatedly by 10 days. The statutory language of section 80 read with section 139(3) is clear, statutory language of section 80 read with section 139(3) is clear, statutory language of section 80 read with section 139(3) is clear, categorical, and admits of no exception. As long as the return of categorical, and admits of no exception. As long as the return of categorical, and admits of no exception. As long as the return of loss is not filed within the time prescribed under section 139(1), the loss is not filed within the time prescribed under section 139(1), the loss is not filed within the time prescribed under section 139(1), the assessee forfeits the right to claim carry forwa assessee forfeits the right to claim carry forward and set rd and set-off of such loss. The binding authority of the Hon’ble Supreme Court in Wipro loss. The binding authority of the Hon’ble Supreme Court in loss. The binding authority of the Hon’ble Supreme Court in Ltd. (supra) squarely governs the field and leaves no scope for (supra) squarely governs the field and leaves no scope for (supra) squarely governs the field and leaves no scope for equitable considerations to override the statutory mandate. equitable considerations to override the statutory mandate. equitable considerations to override the statutory mandate.

5.2. We are not unmindful of the medical exigency pleaded by the . We are not unmindful of the medical exigency pleaded by the . We are not unmindful of the medical exigency pleaded by the assessee, which undoubtedly deserves sympathy. However, fiscal assessee, which undoubtedly deserves sympathy. However, fiscal assessee, which undoubtedly deserves sympathy. However, fiscal statutes are to be interpreted strictly, and neither equity nor statutes are to be interpreted strictly, and neither equity nor statutes are to be interpreted strictly, and neither equity nor hardship can be a ground to ignore the express command of the hardship can be a ground to ignore the express command of the hardship can be a ground to ignore the express command of the te. As observed by the Hon’ble Supreme Court in Wipro Ltd. statute. As observed by the Hon’ble Supreme Court in te. As observed by the Hon’ble Supreme Court in (supra), such a requirement is a condition precedent and not a (supra), such a requirement is a condition precedent and not a (supra), such a requirement is a condition precedent and not a mere procedural formality. Accordingly, the denial of set-off by the mere procedural formality. Accordingly, the denial of set mere procedural formality. Accordingly, the denial of set CPC and its affirmation by the Ld. CIT(A) is in accordance with law. CPC and its affirmation by the Ld. CIT(A) is in accordance with l CPC and its affirmation by the Ld. CIT(A) is in accordance with l We accordingly uphold the hold the order of ld CIT(A) on the issue in order of ld CIT(A) on the issue in dispute. The ground . The grounds of appeal of the assessee of appeal of the assessee are accordingly dismissed.

Order pronounced in the open Court. Order pronounced in the open Court.