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2018 (4) TMI 689 - AT - Income TaxSet off of loss brought forward of the earlier years to be set off in the current assessment year - since 51% shareholding as on 31st March 2009, 31st March 2010 and 31st March 2012 is not with the same persons, the loss cannot be set off - Held that:- Section 79 of the Act provides for carry forward and set off of losses. In the present appeal, the assessee is not seeking carry forward of losses to be set off but the assessee is seeking to set off the brought forward losses of the earlier years to be set off in the current assessment year and therefore provisions of section 79 may not be applicable. The said section would apply if there is a change in voting power in the assessment year when the loss is sought to be carried forward and set off against the subsequent year losses. The assessee in the present appeal for A.Y. 2012-13 is seeking to set off loss incurred in A.Y. 2009-10 and 2010-11. The issue before us relates to loss of A.Y.2009-10 and 2010-11 to be set off against income of A.Y.2012-13. Mr. Vijay Wadhwa and Mrs. Vinita Wadhwa through their shareholding in RPL and WGH as on 31st March 2009 and 31st March 2010, i.e., the last day of the previous year in which the loss was incurred, held voting rights to the extent of 56% and 53% respectively and as on 31st March 2012 held 100% of shares carrying voting rights directly and therefore the assessee appellant is entitled to carry forward and set off of loss of A.Y. 2009-10 and 2010-11 against income of A.Y. 2012-13. - Decided in favour of assessee.
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