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2011 (10) TMI 156 - ITAT DELHIDisallowance of brought forward losses - right to carry forward and set off losses - held that:- Hon'ble Karnataka High Court in the case of Hindustan Aeronautics Ltd. v. CIT (1983 -TMI - 28004 - KARNATAKA High Court) has interpreted the term "inheritance" appearing in section 78(2). The term "inheritance" must mean only a transmission of assets and liabilities of one person to another by the personal law applicable to them and not in any other mode of transfer known to law. Thus, there was no inheritance involved in the case of amalgamation of two companies. The creation of new society on splitting up of the parent society cannot be treated as inheritance and, therefore, provisions of section 78(2) of the Act are not applicable in a case when a society is created on splitting up of parent society. The provisions of section 72A(4) are applicable to the case of a company. When there is no specific provision in case of co-operative societies, the provisions of section 72A(4) cannot be interpolated in the case of co-operative societies on the principle of equity and justice. - The provisions of section 72A(4) are clear and there is no ambiguity and, therefore, question of applying the principle of casus omisus will not apply. Therefore, we are unable to agree with the arguments of the ld. AR of the assessee that 'deficiencies' could be filled up by applying the principle of casus omisus. Deduction u/s 80P - the assessee is engaged in the business of supply/manufacture of milk products and, therefore, the assessee's activities are not covered in clause (a) or clause (b) of section 80P(2) of the Act. The assessee is also not a consumers' Co-op. Society. Therefore, the assessee's case falls in residuary sub-clause (ii) of clause (c) of section 80P(2) of the Act. Therefore, the income of the assessee society attributable to the activity of supplying milk/manufacture of milk products will be eligible for deduction of Rs. 50,000/- from profits and gains attributable to such activities. - Decided partly in favor of assessee and partly in favor of revenue.
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