Set off brought forward business loss

Once a loss is determined in the return file under s 139(3), the assessee becomes eligible for set off against the income of the subsequent years irrespective of the fact whether the returns of such later years are filed under s 139(1) or not as held by MumTrib in Faisal Abbas v DCIT — In favour of: The assessee.

Brought forward business loss has to be mandatorily set off against the income of the subsequent year, whether or not it is below the taxable limit.

Decided on: 25 October 2011.