Carry Forward of Losses of Vodafone Idea: Supreme Court issues Notice in Income Tax Dept’s SLP on Delay Condonation [Read Order]

The Supreme Court directed to issue notice in Income Tax Department’s special leave petition (SLP) on Delay Condonation in the matter regarding Carry Forward of losses of Vodafone Idea

Before the Karnataka High Court, the counsel for Revenue did not dispute the argument of the counsel for the respondent that the matter is covered by the judgment of the Karnataka High Court in Commissioner of Income Tax v. Wipro.

In Commissioner of Income Tax v. Wipro, the High Court of Karnataka at Bengaluru dismissed the said appeal preferred by the Revenue and has confirmed the judgment and order dated 25.11.2016 passed by the Income Tax Appellate Tribunal, Bangalore Bench ‘C’, Bangalore (‘ITAT’), allowing the assessee’s claim for carry forward of losses under Section 72 of the Income Tax Act, 1961.

The Supreme Court in Wipro’s case noted that “For claiming the benefit under Section 10B (8) of the Income Tax 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) of the Income Tax are to be satisfied and both are mandatorily to be complied with.”

A Two-Judge Bench comprising Justice BV Nagarathna and Justice Augustine George Masih observed that “Issue notice to the respondent on the special leave petition as well as on the application seeking condonation of delay in filing the same.”

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