“carry forward of losses”

Losses & Set-offSection 72Section 72260 judgments

The decision most relied on for carry forward of losses is Velayudhaswamy Spinning Mills (P) Ltd. v. ACIT (340 ITR 477), cited in 213 judgments on BharatTax.

Leading authorities on carry forward of losses

Velayudhaswamy Spinning Mills (P) Ltd. v. ACIT

340 ITR 477 · 2012 · High Court

213

citing judgments

If unabsorbed depreciation or losses from years prior to the initial assessment year for Section 80-IA claim have already been set off against other income, they cannot be notionally carried forward again to reduce the profits of the eligible unit for computing deduction under Section 80-IA. The notional carry forward provision under Section 80-IA(5) applies only to unabsorbed depreciation or losses that have not yet been absorbed.

CIT v. Shri Plot Swetamber Murti Pujak Jain Mandal

211 ITR 293 · 1995 · High Court

204

citing judgments

A charitable trust can carry forward its excess expenditure from previous years and adjust it against the income of subsequent years, which qualifies as an application of income under Section 11. Additionally, voluntary contributions received for a specific purpose are treated as corpus funds and are not taxable.

Income Tax v. Institute of Banking Personnel Selection (IBPS)

131 Taxmann 386 · 2003 · High Court

188

citing judgments

The Income Tax Act, 1961, does not permit the carry forward of excess expenditure of a charitable trust to be set off against future surpluses, as such trusts are governed by a self-contained code under Sections 11 to 13, not the head 'Profits and Gains of Business'. However, depreciation on fixed assets is allowable to a charitable institution registered under section 12A.

CIT v. Matriseva Trust

242 ITR 20 · 2000 · High Court

citing judgments

An excess of expenditure incurred by a charitable trust in previous years can be adjusted against the income of a subsequent year, and this adjustment is considered an application of income for charitable purposes under Section 11.

CIT v. Hariprasad & Company Pvt. Ltd.

99 ITR 118 · 1975 · Supreme Court

citing judgments

The terms 'income' or 'profits and gains' are inclusive of losses, signifying that losses are 'minus income' to be factored into the computation of taxable income. Therefore, set-off and carry forward provisions for losses apply exclusively to taxable income or gains and cannot be pressed into service against non-taxable gains, such as those exempt under a DTAA or other specific provisions.

CIT v. Himatasingike Seide Ltd.

286 ITR 255 · 2006 · High Court

citing judgments

Deduction under Section 10A of the Income-tax Act is to be allowed only after setting off unabsorbed depreciation and brought forward business losses against the profits of the business.

CIT v. DLF Commercial Developers Ltd.

35 Taxmann.com 280 · 2013 · High Court

citing judgments

Loss incurred by certain types of companies in trading derivatives is considered speculative loss under the Explanation to Section 73, as the value of stock derivatives depends on shares. Such speculative losses are ineligible for set-off or carry forward against business income.

CIT v. Manmohan Das

59 ITR 699 · 1966 · Supreme Court

citing judgments

The eligibility for an assessee to carry forward and set off losses, including capital losses, against future income is determined by the Assessing Officer in the year the set-off is claimed, not in the year the loss was incurred.

Judgments citing carry forward of losses

ITO, Ward-3(3), Thane vs. M/S. Satya Sai G Agroils P. Ltd., Thane

The appeal of the Revenue is dismissed, whereas the appeal of the Assessee is allowed for statistical purposes

ITA 289/MUM/2021[2010-11]Status: DisposedITAT Mumbai10 Aug 2022AY 2010-11

For Appellant: NoneFor Respondent: Shri Amol Kirtane

Section 143(3)Section 79

assessment proceedings, the Assessing Officer noted that 100% shares of the Appellant have been transferred to M/s Adani Wilmer Limited and therefore, disallowed carry forward of loss of INR 17,60,46,917/-. 3. Being aggrieved, the Assessee filed appeal before CIT(A). Before CIT(A), it was contended ... Company in excess of 50% of total shareholders of the Company takes place. Section 79 of the Act does not prohibit carry forward of losses incurred during the previous year in which change in shareholding as specified in Section 79 takes place. Accordingly, the Assessee claimed that provisions of Section

DCIT, Range- 8(2), Mumbai vs. M/S Hotel Leela Venture Ltd., Mumbai

In the result, the appeal filed by th

ITA 4453/MUM/2013[2007-08]Status: DisposedITAT Mumbai10 Aug 2022AY 2007-08

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Assessment Year: 2007-08 Asst. Commissioner Of Income M/S Hotel Leela Venture Ltd., Tax, Range 8(2), The Leela Kempinski Sahar, R. No. 216-A, Aayakar Bhavan, Vs. Andheri (East), M.K. Road, Mumbai-400059. Mumbai-400020. Pan No. Aaach 3167 J Appellant Respondent Revenue By : Mr. Rakesh Ranjan, Cit-Dr Assessee By : Mr. Prakash K. Jotwani, Adv. Date Of Hearing : 30/06/2022 Date Of Pronouncement : 10/08/2022

For Appellant: Mr. Prakash K. Jotwani, AdvFor Respondent: Mr. Rakesh Ranjan, CIT-DR

Section 72ASection 79

carried forward for future set allowed to be carried forward for future set-off. Therefore, the off. Therefore, the which have been carried forward business loss of Rs.13,43,71,999/ business loss of Rs.13,43,71,999/- which have been carried forward by Kovalam Hotels Ltd prior ... Therefore, it is held that the appe AO. Therefore, it is held that the appellant is eligible for carry llant is eligible for carry forward of losses of Kovalam Hotel Ltd as per section 72A of the forward of losses of Kovalam Hotel Ltd as per section

DCIT (E) -1(1), Mumbai vs. M/S. Gharda Foundations, Mumbai

Appeal is dismissed

ITA 2178/MUM/2021[2017-18]Status: DisposedITAT Mumbai29 Jul 2022AY 2017-18

For Appellant: Shri Deepak ShahFor Respondent: Shri Avinash Tiwari

Section 11Section 11(1)(a)Section 12ASection 143(3)Section 250

Charitable Trust was not assessable under the head "profits and gains of business" under section 28 in which the provision for carry forward of losses was relevant. That, in the case of a Charitable Trust, there was no provision for carry forward of the excess of expenditure of earlier years

DCIT Cent Cir 7(1), Mumbai vs. Shri Manoj Kumar Babulal Punamiya, Mumbai

In the result, the appeal of the revenue is allowed for statistical purposes

ITA 1550/MUM/2021[2011-12]Status: DisposedITAT Mumbai15 Jul 2022AY 2011-12

Bench: Us Is Less Than The Monetary Limit Prescribed By Cbdt For Enabling Revenue To Prefer Appeal Before This Tribunal. This Was Vehemently Objected By The Ld. Dr By Stating That The Case Falls Under The Exception To The Said Cbdt Circular On Low Tax Effect, As In The Instant Case, The Case Was Reopened Based On Audit Objection Which Was Accepted By The Revenue. In Support Of This, The Ld. Dr Placed On Record The Copy Of The Audit Objection, Which Has Been Accepted By The Department. We Have Verified The Same & Are In Concurrence With The Argument Advanced By The Ld. Dr. Accordingly, This Is Not A Fit Case To Be Dismissed On The Ground Of Low Tax Effect. Hence The Parties Were Allowed To Represent The Issues Ground Wise.

Section 143(3)Section 147

income. This was admittedly granted by the ld. AO based on the Schedule ‘CFL’ of the return of income containing the details of carry forward of losses. Later the ld. AO observed that on verification of records for Asst Years 2009-10 and 2010-11, the business income ... after such set off, if there is no loss left out, then he has to pass an order withdrawing the benefit of carry forward of loss. Obviously, the scrutiny assessment orders of Asst Years 2009-10 and 2010-11 becomes a tangible material available with the ld. AO to come

DCIT Central Circle-3(1), Mumbai vs. Wind World India Ltd., Mumbai

In the result, appeal filed by the assessee in ITA number

ITA 1910/MUM/2019[2014-15]Status: DisposedITAT Mumbai24 Jun 2022AY 2014-15

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: NoneFor Respondent: Ms. Dr. Pallavi Darade, CIT DR

Section 132Section 143(3)Section 144Section 153ASection 243CSection 245DSection 92C

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM ITA

Wind World India Limitead, Mumbai vs. DCIT Central Circle-3(1), Mumbai

In the result, appeal filed by the assessee in ITA number

ITA 1470/MUM/2019[2014-15]Status: DisposedITAT Mumbai24 Jun 2022AY 2014-15

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: NoneFor Respondent: Ms. Dr. Pallavi Darade, CIT DR

Section 132Section 143(3)Section 144Section 153ASection 243CSection 245DSection 92C

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM ITA

Wind World India Limitead, Mumbai vs. DCIT Central Circle-3(1), Mumbai

In the result, appeal filed by the assessee in ITA number

ITA 1469/MUM/2019[2013-14]Status: DisposedITAT Mumbai24 Jun 2022AY 2013-14

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: NoneFor Respondent: Ms. Dr. Pallavi Darade, CIT DR

Section 132Section 143(3)Section 144Section 153ASection 243CSection 245DSection 92C

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM ITA

Wind World India Limited, Mumbai vs. DCIT Central Circle 3 (1), Mumbai

In the result, appeal filed by the assessee in ITA number

ITA 1468/MUM/2019[2012-13]Status: DisposedITAT Mumbai24 Jun 2022AY 2012-13

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: NoneFor Respondent: Ms. Dr. Pallavi Darade, CIT DR

Section 132Section 143(3)Section 144Section 153ASection 243CSection 245DSection 92C

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM ITA

Wind World India Limited, Mumbai vs. DCIT Central Circle 3 (1), Mumbai

In the result, appeal filed by the assessee in ITA number

ITA 1467/MUM/2019[2011-12]Status: DisposedITAT Mumbai24 Jun 2022AY 2011-12

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: NoneFor Respondent: Ms. Dr. Pallavi Darade, CIT DR

Section 132Section 143(3)Section 144Section 153ASection 243CSection 245DSection 92C

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM ITA

Wind World India Ltd., Mumbai vs. DCIT Central Circle-3(1), Mumbai

In the result, appeal filed by the assessee in ITA number

ITA 1466/MUM/2019[2010-11]Status: DisposedITAT Mumbai24 Jun 2022AY 2010-11

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: NoneFor Respondent: Ms. Dr. Pallavi Darade, CIT DR

Section 132Section 143(3)Section 144Section 153ASection 243CSection 245DSection 92C

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM ITA

Wind World India Ltd., Mumbai vs. DCIT Central Circle-3(1), Mumbai

In the result, appeal filed by the assessee in ITA number

ITA 1465/MUM/2019[2007-08]Status: DisposedITAT Mumbai24 Jun 2022AY 2007-08

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: NoneFor Respondent: Ms. Dr. Pallavi Darade, CIT DR

Section 132Section 143(3)Section 144Section 153ASection 243CSection 245DSection 92C

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM ITA

DCIT - CC 3 (1), Mumbai vs. Wind World India Ltd., Mumbai

In the result, appeal filed by the assessee in ITA number

ITA 1355/MUM/2019[2013-14]Status: DisposedITAT Mumbai24 Jun 2022AY 2013-14

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: NoneFor Respondent: Ms. Dr. Pallavi Darade, CIT DR

Section 132Section 143(3)Section 144Section 153ASection 243CSection 245DSection 92C

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM ITA

DCIT Central Circle-3(1), Mumbai vs. Wind World India Ltd., Mumbai

In the result, appeal filed by the assessee in ITA number

ITA 1354/MUM/2019[2012-13]Status: DisposedITAT Mumbai24 Jun 2022AY 2012-13

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: NoneFor Respondent: Ms. Dr. Pallavi Darade, CIT DR

Section 132Section 143(3)Section 144Section 153ASection 243CSection 245DSection 92C

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM ITA

DCIT - CC 3(1), Mumbai vs. Wind World India Ltd., Mumbai

In the result, appeal filed by the assessee in ITA number

ITA 1353/MUM/2019[2011-12]Status: DisposedITAT Mumbai24 Jun 2022AY 2011-12

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: NoneFor Respondent: Ms. Dr. Pallavi Darade, CIT DR

Section 132Section 143(3)Section 144Section 153ASection 243CSection 245DSection 92C

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM ITA

DCIT Central Circle 3 (1), Mumbai vs. Wind World India Limited, Mumbai

In the result, appeal filed by the assessee in ITA number

ITA 1352/MUM/2019[2010-11]Status: DisposedITAT Mumbai24 Jun 2022AY 2010-11

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm

For Appellant: NoneFor Respondent: Ms. Dr. Pallavi Darade, CIT DR

Section 132Section 143(3)Section 144Section 153ASection 243CSection 245DSection 92C

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM ITA

Hikal Ltd, Mumbai vs. DCIT Cir 3(1), Mumbai

In the result, appeal by the assessee is partly allowed for statistical purpose

ITA 5386/MUM/2012[2007-08]Status: DisposedITAT Mumbai20 Jun 2022AY 2007-08

Bench: Shri Om Prakash Kant & Shri Sandeep Singh Karhail

For Appellant: Shri Sanjay ParikhFor Respondent: Shri Tejinder Pal Singh Anand

Section 10BSection 14ASection 250Section 35Section 35(1)(vi)

profits of the EOU units which is governed by exemption under section 10B of the Income-Tax Act and thereby not granting carry forward of losses of EOU units restricting the exemption u/s 10B of the Income Tax Act. 9. The appellant company prays that– i. The exemption

Abacus Internaitional Pte Ltd, Mumbai vs. DDIT (It) 1(1), Mumbai

In the result, appeal of the assessee is allowed for statistical purposes

ITA 2352/MUM/2014[2006-07]Status: DisposedITAT Mumbai24 May 2022AY 2006-07

Section 143(3)Section 271(1)(c)

into income by the ld. AO in the assessment proceedings. He also specifically pointed out that assessee has not claimed any benefit of carry forward of losses. Hence, there is no question of tax sought to be evaded within the meaning of Section 271(1)(c) of the Act. Considering

Tata Communications Payment Solutions Ltd, Mumbai vs. DCIT Cir 14(3) (1), Mumbai

The appeal is dismissed

ITA 107/MUM/2022[2015-16]Status: DisposedITAT Mumbai23 May 2022AY 2015-16

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm Tata Communications Payment The Dcit, Solutions Ltd. Circle 14(3)(1) Plot No.C21 & C36, Aayakar Bhavan, Vs. Bandra Kurla Complex, Mumbai-400 020 Mumbai-400 051 (Appellant) (Respondent) Pan No. Aadcb3924G Assessee By : Shri Heman Desai & Shri Kaikobad Damania, Ars’ Revenue By : Shri Amol Kirtane, Cit Dr Date Of Hearing: 12.05.2022 Date Of Pronouncement : 23.05.2022

For Appellant: Shri Heman Desai &For Respondent: Shri Amol Kirtane, CIT DR

Section 143(3)Section 244ASection 250Section 32(2)Section 72

consideration. which may kindly be considered and adjudicated: 1. No direction given to the Learned AO to pass a speaking order for allowing carry forward of losses claimed by the Appellant: On the facts and the circumstances of the case and in law, the Hon'ble CIT(A) has erred ... made. The assessee preferred the appeal before the learned CIT (A) stating that there was no direction in the assessment order to carry forward assessed loss as business loss and also unabsorbed depreciation as per the provision of Section 32(2) and Section 72 of the Act. Assessee is also

Mahindra Trucks and Buses Limited, Mumbai vs. DCIT-2(2)(2), Mumbai

In the result, appeal filed by the assessee is partly allowed

ITA 519/MUM/2018[2013-14]Status: DisposedITAT Mumbai28 Apr 2022AY 2013-14

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm Mahindra Two Wheelers Ltd, The Dy. Commissioner Of (Formerly Mahindra Trucks Income Tax, 2(2)(2), Ayakar & Buses Ltd.) Bhavan, M.K. Road, Mumbai- Vs. Gateway Building, Apollo 400 020 Bunder, Mumbai-400 001 (Appellant) (Respondent) Pan No. Aaacm7863L

For Appellant: Ms. Karishma Phatarphekar &For Respondent: Ms. Vatsalaa Jha, CIT DR

Section 143(3)Section 144C(13)Section 194HSection 201Section 40aSection 92C

capital receipt. Accordingly, ground number 4 of the appeal of the assessee is allowed. 040. Ground no 6 is with respect to granting carry forward of losses and unabsorbed depreciation. Ld AO is directed to compute the same in accordance with law. Thus Ground no 6 is allowed

Dy CIT-CC-7(1), Mumbai vs. Dr. D Y Patil Educational Academy, Mumbai

ITA 1035/MUM/2021[2013-14]Status: DisposedITAT Mumbai11 Feb 2022AY 2013-14

Bench: Shri Pramod Kumar & Shri Kuldip Singh

For Appellant: Shri Satyaprakash Singh, A.RFor Respondent: Shri Sandeep Raj, D.R

Section 11Section 12ASection 132Section 153CSection 80G

Charitable Trust was not assessable under the head “profits and gains of business" under section 28 in which the provision for carry forward of losses was relevant. That, in the case of a Charitable Trust, there was no provision for carry forward of the excess of expenditure of earlier years