1995 (12) TMI 52

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the instance of the Revenue and the following question of law has been referred by the Tribunal for answer to this court : " Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that the provisions of section 79(b) cannot be invoked and the assessee was entitled to carry forward of losses ? " The brief facts giving rise to this reference are thus ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....elying on his earlier order dated May 30, 1983, for the assessment year 1978-79, The Commissioner of Income-tax (Appeals) allowed the appeal following the earlier decision and permitted the set-off under section 79 of the Income-tax Act. Aggrieved by the aforesaid order of the Commissioner of Income-tax (Appeals), the Revenue preferred an appeal before the Tribunal and the Tribunal affirmed the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ction 79 of the Income-tax Act clearly lays down the carry forward and set off of losses in the case of certain companies. It is true that both the conditions as mentioned in section 79(a) and (b) of the Income-tax Act are that on the last day of the previous year, the shares of the company carrying not less than fifty-one per cent. of the voting power were beneficially held by the persons who ben....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Tribunal is well founded that it was one of the first conditions to deny this benefit clause to record the finding that any change in shareholding was effected with a view to avoiding or reducing any liability to tax. Since there is no positive finding that this change in shareholding was done for the purpose of avoiding or reducing the tax liability, then in that case, there was no option with th....