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2022 (7) TMI 431 - AT - Income TaxDisallowing the loss u/s 79 - Reason for such disallowance is that during the previous year there is change in shareholding of the assessee company - HELD THAT:- Section 79 of the Act reads that where a change in shareholding has taken place in any previous year in the case of a company, not being a company in which the public are substantially interested, no loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year, but subject to certain conditions. Here in this case the previous year is 2013-14 and the relevant assessment year is 2014-15. With reference to these, the losses that are not allowable to be carried forward to be set off against the income of the assessment year 2014-15 or the losses relating to the period prior to the assessment year 2014-15. It means that any loss that is coming from the assessment year 2013-14 is not allowable against the income of the assessment year 2014-15. This does not mean that the losses incurred during the assessment year 2014-15 (in the financial year 2013-14) are not to be allowed to be carried forward. With this view of the matter, we find that the observations of the authorities below that the current year losses are not to be allowed to be carried forward further are untenable. We accordingly allowing the grounds of appeal, direct the learned Assessing Officer to delete the disallowance made under section 79 - Appeal of assessee allowed.
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