https://www.taxtmi.com/caselaws?id=37443 The High Court of Madras ruled in favor of the assessee, holding that unabsorbed depreciation and development rebate are not subject to the restrictions of section 79 of the Income Tax Act, 1961. The court emphasized that section 79 aims to prevent evasion through "purchase of losses" in closely-held companies and does not apply to these specific components. The judgment provides clarity on the interpretation of loss carry forward provisions, affirming that unabsorbed depreciation and development rebate are distinct from general losses under the Act. en-us Wed, 24 Jan 1979 00:00:00 +0530 Mon, 29 Mar 2010 16:59:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37443 The High Court of Madras ruled in favor of the assessee, holding that unabsorbed depreciation and development rebate are not subject to the restrictions of section 79 of the Income Tax Act, 1961. The court emphasized that section 79 aims to prevent evasion through "purchase of losses" in closely-held companies and does not apply to these specific components. The judgment provides clarity on the interpretation of loss carry forward provisions, affirming that unabsorbed depreciation and development rebate are distinct from general losses under the Act. Case-Laws Income Tax Wed, 24 Jan 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37443