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This tax alert summarizes a Supreme Courtroom ruling within the case of Wipro Ltd. (Taxpayer), dated July 11, 2022 whereby problem raised was whether or not a declare for exemption underneath part 10B made in unique return of revenue could be withdrawn by submitting a declaration to decide out of the declare past the time specified within the provision.
The taxpayer filed its unique ROI throughout the due date by declaring loss however reserved its declare for exemption underneath S. 10B by furnishing a certificates from an accountant verifying such a declare.
Subsequently, the taxpayer withdrew such declare underneath revised ROI, filed a belated declaration for opting out of S.10B and made a declare for carry ahead of losses.
Nevertheless, tax authority denied the declare for belated withdrawal and thereby denied the good thing about carrying ahead of loss.
On this backdrop, the SC negated the rivalry of the taxpayer and held that exemption provisions are to be strictly construed and the time restrict offered underneath S.10B(8) to file a declaration to decide out of the declare is necessary.
The moment SC ruling is important when it comes to numerous ideas emanating from it. One of many propositions endorsed by the SC is that revised tax return can’t be filed to change the declare made within the unique return besides in circumstances involving mistake or fallacious assertion within the unique return.
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