Section 16(2) in The Assam Agricultural Income-Tax Act, 1939
(2)Where any assessee sustains a loss of profits or gains in any year being a previous year not earlier than the previous year for the assessment for the year ending on the 31st day of March, 1940, the loss shall be carried forward to the following year and set-off against the profits or gains if any of the assesses from agricultural income for that year and if it cannot be wholly so set-off the amount of loss not so set-off shall be carried forward to the following year and so on but no loss shall be carried forward for more than three years.Provided that if any assessee fails to file his return of loss of profits or gains for any year in time in accordance with the provisions of sub-section (1) of Section 19, his claim for carry- forward and set off of such loss against any future income as per provisions of sub-section (1) or sub-section (2) of this Section shall not be entertained.
