1981 (1) TMI 152

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....ssessment year 1976-77. During the accounting year ended 30-6-1976, relevant to the assessment year 1977-78, under present appeal, the assessee sold the assets and derived profit of Rs. 6,185. The ITO assessed it as income under section 41(2), under the head "Profits and gains of business or profession" for the reasons discussed in the appellate order for the assessment year 1976-77. The ITO did not set off the loss brought forward from the earlier years against the above income, no reasons being assigned in the assessment order for this denial. The assessee contended before the Commissioner (Appeals) that the carried forward business loss for the earlier years should be set off against the profit under section 41(2). The Commissioner (Appe....

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....oneys payable in respect of the building machinery, plant or furniture referred to in this sub-section become due in a previous year in which the business or profession for the purpose of which the building, machinery, plant or furniture was being used is no longer in existence, the provisions of this sub-section shall apply as if the business or profession is in existence in that previous year." "72(1) Where for any assessment year, the net result of the computation under the head 'Profits and gains of business or profession' is a loss to the assessee, not being a loss sustained in a speculation business, and such loss cannot be or is not wholly set off against income under any head of income in accordance with the provisions of section....