https://www.taxtmi.com/caselaws?id=5261 The Supreme Court held that under section 79 of the Income-tax Act, changes in shareholding must be to avoid or reduce tax liability for the disallowance of set-off of losses to apply. The Court clarified that the conditions in section 79 operate as alternatives, not cumulatively, allowing for set-off if either condition is met. This interpretation aims to prevent tax avoidance schemes through shareholding changes, aligning with the legislative intent to prevent abuse of loss set-off provisions for tax avoidance purposes. The Court affirmed the right of the assessee to carry forward and set-off losses against income, dismissing the appeal. en-us Mon, 05 Sep 1988 00:00:00 +0530 Sat, 22 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5261 The Supreme Court held that under section 79 of the Income-tax Act, changes in shareholding must be to avoid or reduce tax liability for the disallowance of set-off of losses to apply. The Court clarified that the conditions in section 79 operate as alternatives, not cumulatively, allowing for set-off if either condition is met. This interpretation aims to prevent tax avoidance schemes through shareholding changes, aligning with the legislative intent to prevent abuse of loss set-off provisions for tax avoidance purposes. The Court affirmed the right of the assessee to carry forward and set-off losses against income, dismissing the appeal. Case-Laws Income Tax Mon, 05 Sep 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5261