Intimation of Loss - Section 157 - Income Tax - Ready Reckoner - Income Tax

Intimation of Loss - Section 157 When, in the course of the assessment of the total income of any assessee, it is established that a loss has taken place which the assessee is entitled to have carried forward and set off under the provisions of section 72(1) or section 73(2) or section 74(1) (3) or section 74A(3) then the Assessing Officer shall notify to the assessee by an order in writing the amount of the loss as computed by him. Effect of Non-Intimation of Loss:- In the course of an assessment proceeding if a loss is computed it is incumbent of the Assessing Officer to notify to the assessee by an order in writing the amount of loss so computed or determined by him. In the absence of such a communication, the assessment could not be treated as a valid assessment order. Commissioner Of Income-Tax Versus Badri Prasad Bianwalla [1981 (2) TMI 45 CALCUTTA High Court]. Failure to compute loss, order is appealable: - Computation of loss is a part of the process of assessment in case the assessee claims set off in the year and also is a necessary process for the assessee s right to carry forward that loss as provided in the Act. This is also evident from section 143, which permits computation of the total income or loss of the assessee. Thus, an order, which has the effect that there was no proper computation of loss, is an appealable one. Commissioner Of Income-Tax Versus Garia Industries Pvt. Limited [ 1982 (6) TMI 47 CALCUTTA High Court