1988 (11) TMI 35

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....livered by GOKAL CHAND MITAL J. - The Income-tax Appellate Tribunal, Amritsar, has referred the following two common questions for the assessment years 1974-75 and 1976-77 for opinion of this court " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the provisions of section 79(a) of the Income-tax Act, 1961, are attracted in the case ?....

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....ntemplated by section 79 is the one which is to be found on a comparison between the position of voting power on the last day of the previous year for which the assessment is sought to be made and the corresponding position of the earlier year in which the loss was incurred which is claimed to be set off. In view of this, we hold that the provisions of section 79 will be attracted in this case. As....

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....of the change in, the shareholding may be a negation or reduction of tax liability. This crucial test having not been applied in addition to the voting power test by the Income-tax Officer, his decision cannot be upheld. We set aside the findings of the Appellate Assistant Commissioner and the Income-tax Officer in regard to the set off of loss for the assessment year 1970-71 in the assessment yea....

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....year 1971-72 is concerned, we have already pointed out above that that loss could be carried forward and set off in both the assessment years 1974-75 and 1976-77. The Income-tax Officer will bear in mind these observations while disposing of this issue for the assessment years 1974-75 and 1976-77. It is not clear to us whether, for the assessment year 1974-75, the assessee had also claimed the set....