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2017 (1) TMI 1328 - AT - Income TaxCarry-forward the losses of earlier years - Held that:- Section 79 was enacted with the object of preventing what may be shortly described as buying of losses by taking over controlling interest in the shareholding of a company which had carried forward losses.We find that the FAA has not passed a speaking order.From his order,it is not clear as what was the shareholding for the initial year and what changes took place during the year under consideration. He has listed names of several companies and their shareholding pattern. But,nothing is coming out as to how the provisions of section 79 are applicable or not. He has not commented upon the clause (a)and (b)of the section and their applicability to the facts of the case. Therefore, we are of the opinion that,in the interest of justice, matter should be restored back to his file for fresh adjudication.He will decide the matter after affording a reasonable opportunity of hearing to the assessee. Effective ground of appeal is decided in favour of the AO, in part.
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