TaxTMI 
TaxTMI 
Set off of loss in search cases - Amendment in the provisions of section 79A of the Act
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....e specific provisions relating to set off or carry forward and set off of losses while computing the income under various heads and with respect to different classes of persons. 2. It is noticed that in some cases, assessees claim set off of losses or unabsorbed depreciation, against undisclosed income corresponding to difference in stock, undervaluation of stock, unaccounted cash payment etc. wh....
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....suring that proper tax is paid on income detected due to a search or survey and also result in increased deterrence against tax evasion. 4. Therefore, it is proposed to insert a new section 79A in the Act to provide that notwithstanding anything contained in the Act, where consequent to a search initiated under section 132 or a requisition made under section 132A or a survey conducted under secti....
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....on made under section 132A or a survey conducted under section 133A, other than that conducted under sub-section (2A) of section 133A, which has- (a) not been recorded on or before the date of search or requisition or survey, in the books of account or other documents maintained in the normal course relating to such previous year; or (b) not been disclosed to the Principal Chief Commissioner o....