The Supreme Court has held {that a} taxpayer should fulfil the dual circumstances of furnishing a declaration to avail the advantage of carrying ahead or set off of any loss and doing this earlier than the due date of submitting the unique return of earnings.
Setting apart the Karnataka High Court’s opposite view that the requirement of furnishing a declaration is obligatory, however the time restrict inside which the declaration is to be filed is an solely listing, a Bench led by Justice MB Shah held that the HC had dedicated a grave error and its view “is erroneous and contrary to the unambiguous language contained in Section 10B (8) of the IT Act.”
“We hold that for claiming the benefit under Section 10B (8) of the IT Act, the twin conditions of furnishing a declaration before the assessing officer and that too before the due date of filing the original return of income under section 139(1) are to be satisfied and both are mandatory to be complied with,” it mentioned, including that the wording of Section 10B (8) is “very clear and unambiguous.”
It held that Wipro, which is within the enterprise of operating a name centre and IT Enabled and Remote Processing Services, can’t declare a tax advantage of Rs 15.48 crore because it had didn’t fulfil the dual circumstances for carrying forwarding of losses below Section 72.
Rejecting Wipro’s argument that it had a substantive statutory proper to opt-out of Section 10B (8) which can’t be nullified by construing the purely procedural time requirement as being obligatory, the judges mentioned that the exemption provisions are to be strictly and complied with and the identical can’t be construed as a procedural requirement.
Source: www.financialexpress.com”