TaxTMI 
TaxTMI 
1996 (7) TMI 50
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....of the Income-tax Act, 1961, praying for a reference of the following two questions : " 1. Whether, on the facts and in the circumstances of the case--- (a) the Tribunal is right in law and fact, in characterising/finding the sale of Eastern Tourist Home---a hotel business---as ' a mere discontinuance of an activity ' and is not such a finding wrong, unreasonable, also unwarranted so long as the....
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....nder section 155 of the Act ?" The assessment year is 1975-76. The original assessment was completed on February 18, 1978, when the share income from the firm, Janatha Medicals, was adopted as unabsorbed depreciation of 1974-75 was carried forward and set off against the income for the assessment year in question. Subsequently, this was sought to be modified by initiation of action under section....
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....ated that the business was a composite one and it is recorded that this finding is not challenged before it by the Revenue. In conclusion, the Tribunal has held that mere discontinuance of an activity in a composite business will not disentitle the assessee to the benefit of carry forward and set off of unabsorbed losses and depreciation against the other incomes of the assessee. Additionally, the....