Solution to the above:
Go to Forms → Computation → Click on e-ITR-2
Reason why ITR- 1 or ITR 2 are not being selected would be suggested by the software.
To check the same, Go to → Transactions → Set off & B F
In case if the Business Brought Forward losses are available, the ITR to be generated is ITR-3 So proceed below to enter the data for Nature of business.
Go To Transaction → Filing Information → Nature of business.
Once the details for Nature of Business are and and saved, the Computation then generated would indicate ITR- 3 in Green Color for XML file generation and Submission.