2011 (5) TMI 354 - AT - Income Tax

Carry forward and set off of loss - Whether the provision of section 72 and 32(2) are attracted on income form syndication charges / financial consultancy - The main contention of the department herein is that the assessee's business of manufacturing of TV sets was not carried on by the assessee and it was closed in the assessment year under consideration - AO has treated the income from syndication charges as income from other sources and declined the benefit of set off of losses - Held that:- in order to constitute same business, it is not necessary, as is the view of the Hon'ble Supreme Court in CIT v. Prithvi Insurance Co. Ltd. (1966 -TMI - 39923 - SUPREME Court), that the nature of two businesses has to be identical. - In effect, there can be a diverse nature of activities and yet these activities may constitute same business when there is a common management of these business activities, unity of organisation, common employees, common administration, a common fund and a common place of business. - lower authorities were not justified in declining set off of business loss incurred by the assessee out of the income earned from in syndication charges - Decided in favor of assessee.