Whether carry forward of losses can be denied if Books of account not audited at time of filing of ITR ?
There could be several reasons for not getting the statutory audit/tax-audit done within prescribed time, but unless there is specific/express provision which stipulates that if the audit is not done within prescribed time, the loss shall not be allowed to be carried forward, we cannot expand the scope of the statute. Section 80 stipulates that return of income is to be filed within the prescribed time, which assesse did complied with although provisional financial statements were filed along with return of income
There is no justification for denying the carry forward of the business loss for the year under consideration based on the audited financial statements keeping in view applicable and relevant provisions of the 1961 Act for computing such loss