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2018 (8) TMI 1126 - AT - Income TaxClaim of set off of brought forward losses - deduction u/s 80IA - The AO was of the view that having positive income from the assessment year 2005-06 to the assessment year 2011-12 the assessee ought to have claimed the set off losses in the immediately subsequent assessment year and it is incorrect to claim the set off of losses after completion of tax holiday period. The income of the assessee is required to be computed each year independently after setting off of losses of earlier years in the subsequent assessment years. If the losses could not allowed to be set off the losses are allowed to be carried forward for the 7 consecutive assessment years from the end of the assessment year in which the loss was incurred. There is no special provisions to allow the carry forward of losses in the case of 80IA as held by the Ld.CIT(A). In the instant case, the assessee has carried forward the losses till exhausting the 10 years tax holiday period and claimed the loss in the impugned assessment year which is against the provisions of law. As held by Hon’ble Special Bench in the case of Goldmine Shares [2008 (4) TMI 405 - ITAT AHMEDABAD], the losses incurred in 2003-04 and 2004-05 required to be set off against 2005-06 and in subsequent assessment years. Having not claimed the set off losses in the A.Y.2005-06, the assessee is disentitled to claim the set off of such losses in the impugned assessment year. Decided in favor of revenue.
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