1996 (7) TMI 50

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....his is a petition under section 256(2) 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, un....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....withdrawal of the benefit is not amenable to action under 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 so....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he relevant previous year. In its reasoning this finding is reiterated 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 depr....