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2022 (12) TMI 214 - ITAT BANGALORERectification of mistake u/s 154 - Validity of subsequent revised return - return of income was not filed before the due date for filing u/s.139(1) - carry forward of 'long-term capital loss' - HELD THAT:- As per the language used in subsection (3) to section 139, it is contemplated that when the assessee files the original return, at that time, there should be loss and the assessee desires to claim said loss to be carried forward and set off in future assessment years. Sub-section (1) of section 139 cast statutory obligation on the assessee when there is positive income. In the present case, admittedly, the assessee filed the return of income declaring the positive income and even in the revised return, the assessee has declared the positive income as the loss in respect of the sale of shares, which could not be set off, inter-source or inter-head under section 70 or 71 - As per the provisions of sub-section (5) to section 139, in both the situations where the assessee has filed the return of positive income as well as return of loss at the first instance as per the time limit prescribed and subsequently, files the revised return then the revised return is treated as valid return. In the present case, as the assessee filed its original return declaring the positive income and hence, in our opinion, subsequent revised return is valid return also and the assessee is entitled to carry forward of 'long-term capital loss'. Sub-sections (1) and (3) of section 139 provides for the different situations and in our opinion, there is no conflict in applicability of both the provisions as both the provisions are applicable in the different situations. Issue with regard to carry forward of short term capital loss claimed by the assessee should be directed to be examined by the AO afresh in the light of the observations made above. Accordingly, we allow the appeal of the assessee for statistical purposes.
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