AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2017 (1) TMI 1328
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....ining its income at Rs. 84.32 lakhs. 2. Effective ground of appeal is about allowing the assessee to carry-forward the losses of earlier years.During the assessment proceedings,the AO found that the shareholding pattern of the assessee had changed during the year under consideration. He directed it to furnish the details of shareholding on the first day and the last day of the assessment year. He found that Altime Construction P. Ltd.was holding hundred percent shares of the assessee-company during the year 2009-10,that in the subsequent year it held only 50% shares and rest were held by another company.He observed that there was change in shareholding pattern of the assessee.He directed it to explain as to why brought forward losses shoul....
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....009,that in 2009 M/s. Aim Sales Agency Private Ltd.was allotted shares of assessee,that Alltime Construction Private Ltd and Aim Sales Agencies Private Ltd. held 50- 50 percent shares, that examination of Alltime Construction Private Limited shareholding revealed that Crescent Engineering Private Ltd. and Crescent Properties Private Limited together controlled 66.66% shares of Aim Sales Agencies Private Limited, that Crescent Engineering Private Ltd. and Crescent Properties Private Limited were holding 83.34% shares of the assessee even after September 2009, that All-time Construction Private Ltd. and Aim sales Agencies Private Limited together beneficially control more than 51% shares of the assessee company. He referred to the cases of Am....
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....-it was brought on statute book for the first time by the present Act and it was at the stage of the Select Committee when the Act was enacted that several changes were made in the language of the section and the provisions of the section.At present the section contains two cluses.But,when the Income-tax Bill,1961,was moved in the Lok Sabha,clause 79 of the Bill contained only provisions which included merely, clause (a) and there was no reference therein to clause (b) at all.This Bill was referred by the Lok Sabha to a Select Committee and the Committee by its report presented on 10.08.1961,in paragraph 41 thereof stated that the provisions of the clause should be applied where a change in the shareholding of the company had been brought a....
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....early on a grammatical interpretation goes to show that clause (a) and (b) are to be applied disjunctively and not conjunctively. v. Article 'the' has been used in clause (b) shows that a change of the type referred to in clause (a),namely, that more than 51 % of the voting power of the group at the two relevant dates had been changed.Even in such a case the very fact that the benefit of clause (a) may not be available to such an assessee will not disentitle him to the benefit of clause (b),if he was entitled to the benefit of the same. vi. The result of a substantial change in the shareholding of a company is to treat the company as if it was newly incorporated and had not incurred any losses prior to the previous year, unless it came wi....
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....holding, was not effected with a view to avoiding or reducing any liability to tax.In other words,before the loss incurred in the earlier year is allowed to be carried forward there should be such a change in the shareholdings as contemplated by clause (a) and further the AO should be satisfied that such a change in the shareholdings seems to have been brought about only with a view to continue the same business conveniently. viii. Section 79 forms part of Chapter VI and is connected with the carry forward and set off of losses which are provided for in section 72 onwards.Section 32(2) pertains to depreciation allow -ances/carrying forward of unabsorbed depreciation allowance and section 33(2)is about carrying forward of development rebate....