The Tax Publishers2020 TaxPub(DT) 4329 (Mum-Trib)

INCOME TAX ACT, 1961

Section 79

Claim for set-off of carried forward business losses prior to assessment years 2006-07 against profits of concerned assessment year, i.e., assessment year 2012-13 vis-a-vis provisions of section 79 had to be examined by AO only in the assessment year in which assessee claimed such set off of losses in the return of income.

Loss - Carry forward of losses - Denial by AO invoking section 79 -

During the assessment year under consideration, i.e., assessment year 2012-13 assessee in the return of income claimed set-off of losses relating to the assessment years prior to assessment year 2006-07. However, AO denied set-off of unabsorbed business loss on the ground that carry forward of losses was denied by AO in assessment year 2006-07 invoking section 79. Assessee's case was that AO could examine applicability of section 79 only in the year in which loss was set off, and not in the year in which assessee claimed the loss to be carried forward. Held: Claim for set off of carried forward losses prior to assessment years 2006-07 against profits of concerned assessment year, i.e., assessment year 2012-13 vis-a-vis provisions of section 79 had to be examined by AO only in the assessment year in which assessee claimed such set off of losses in the return of income. AO was directed accordingly.

Followed:CIT v. Manmohan Das (1966) 59 ITR 699 (SC) : 1966 TaxPub(DT) 236 (SC).

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2012-13


INCOME TAX ACT, 1961

Section 153A

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