Case Law Details
Orra Fine Jewellery Pvt. Ltd. Vs DCIT (ITAT Mumbai)
The substantial issue for consideration now before us for the A.Y. 2012-13 is whether the provisions of section 79 of the Act can be invoked and examined in the assessment year in which the assessee claimed for carry forward of losses or in the assessment year in which the assessee actually claimed set off of carry forward losses against the profits of that year. The assessee contends that the Assessing Officer can examine the applicability of the provisions of section 79 of the Act only in the year in which the loss is set off and not in the year in which the assessee claims the loss to be carried forward. In the present case during the A.Y. 2006-07 the Assessing Officer invoking the provisions of section 79 of the Act denied carry forward of losses prior to the A.Y. 2006-07. Assessee carried the matter unsuccessfully before the appellate authorities and the matter is now pending before the Hon’ble High Court.
In the case of CIT v. Manmohan Das [59 ITR 699] the following question which came up before the Hon’ble Allahabad High Court has been examined by the Hon’ble Supreme Court in the appeal preferred by the revenue.
“Whether the assessee could claim a set off of the loss suffered by him in the preceding year 1950-51 against his profits in the year under consideration, i.e., 1951-52, having failed to prefer an appeal against the refusal by the Income-tax Officer making the assessment for the year 1950-51 to allow the assessee to carry forward the loss under section 24(2) of the Act ?”
The Hon’ble Supreme Court held as under: –
Please become a Premium member. If you are already a Premium member, login here to access the full content.
