Section 20 - Amendment of section 78 - Direct Tax Laws (Amendment) Act, 1987

20. Amendment of section 78. In section 78 of the Income-tax Act, for sub-section (1), the following sub-section shall be substituted, namely :- (1) Where a change has occurred in the constitution of a firm, nothing in this Chapter shall entitle the firm to have carried for- ward and set off so much of the loss proportionate to the share of a retired or deceased partner as exceeds his share of profits, if any, in the firm in respect of the previous year. .