TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether, in the facts of the case, earlier years' losses and unabsorbed depreciation could be carried forward and set off in future years despite the change in shareholding attracting section 79(a) of the Income-tax Act, 1961.
Analysis: The assessee, a private limited company, underwent a change in shareholding so that not less than 51 per cent of the voting power came to be held by persons other than the previous shareholders. The Income-tax Officer refused carry forward of the earlier years' loss and unabsorbed depreciation on the footing that section 79(a) barred such benefit. The appellate authority and the Tribunal held otherwise, following the view that the restriction under section 79(a) did not deny the assessee the benefit of carry forward of loss in the circumstances, and that unabsorbed depreciation was governed by section 32(2) and stood on the same footing as current depreciation for carry forward purposes.
Conclusion: The earlier years' losses and unabsorbed depreciation were entitled to be carried forward and considered in future years, and the question was answered in the affirmative against the Revenue.
Ratio Decidendi: A change in shareholding attracting section 79(a) does not, on the facts considered, prevent carry forward of earlier years' losses and unabsorbed depreciation, the latter being governed by section 32(2) of the Income-tax Act, 1961.
TaxTMI 
TaxTMI 
