Query:
For a company Loss in A.Y. 2012-13 is rs . 12500 Profit in A.Y 2013-14 is Rs. 50000 but company failed to take the set off of the said loss And now, Profit in A.Y 2014-15 is Rs. 5,00,000 So can the company take the set off of the loss in current year. Loss in A.Y. 2012-13 is related to Loss from Business other than speculative business.
Answer
No, the company cannot setoff of the AY 2012-13 Loss in AY 2014-15.
For a company Loss in A.Y. 2012-13 is rs . 12500 Profit in A.Y 2013-14 is Rs. 50000 but company failed to take the set off of the said loss And now, Profit in A.Y 2014-15 is Rs. 5,00,000 So can the company take the set off of the loss in current year. Loss in A.Y. 2012-13 is related to Loss from Business other than speculative business.
Answer
No, the company cannot setoff of the AY 2012-13 Loss in AY 2014-15.
It is mandatoy to set off loss in the AY 2013-14.
It is mandatory to set off loss in the AY 2013-14. It is mandatory to set off the carried forward losses in the immediately succeeding year, against the income of such succeeding year. Otherwise, the losses will get lapsed. Tyresoles v CIT 49 ITR 515 (Madras).
So, Revise return of AY 2013-14 and get refund of tax paid in AY 2013-14.
Set off mandatory in the succeeding year or not ?