Political contribution deductions require assessee-specific proof before cash-back allegations can justify disallowance or unexplained-money additions...
The ITAT considered the issue of set off of carried forward losses against current year profit due to a change in shareholding. Section 79 application was disputed, with the assessee arguing it pertains only to business loss, not unabsorbed depreciation. Legal precedent, including a Supreme Court ruling, clarified that section 79 does not cover unabsorbed depreciation. The ITAT directed the AO to verify if the losses in question include unabsorbed depreciation for set off against future profits. The appeal was allowed with this condition.
The ITAT considered the issue of set off of carried forward losses against current year profit due to a change in shareholding. Section 79 application was disputed, with the assessee arguing it pertains only to business loss, not unabsorbed depreciation. Legal precedent, including a Supreme Court ruling, clarified that section 79 does not cover unabsorbed depreciation. The ITAT directed the AO to verify if the losses in question include unabsorbed depreciation for set off against future profits. The appeal was allowed with this condition.
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