Demerger Loss Carry Forward: Sec 72A(4) Applies; PCIT Revision Using Sec 72A(2) Conditions Invalid

CIT Vs Eastman Exports Global Clothing Private Limited (Madras High Court) The Madras High Court dismissed the tax appeal filed by the Revenue against the order of the Income Tax Appellate Tribunal, which had set aside a revisionary order passed by the Commissioner of Income Tax (CIT) under Section 263 of the Income Tax Act, 1961. The dispute related to Assessment Year 2007–08 and arose from the CIT’s order dated 27.03.2012 revising an assessment originally completed on 18.12.2009. The assessee had carried forward unabsorbed depreciation and business losses of three entities following cour...