1996 (7) TMI 50

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..... of the Income-tax Act, 1961, praying for a reference of the following two questions : " 1. Whether, on the facts and in the circumstances of the case--- (a) the Tribunal is right in law and fact, in characterising/finding the sale of Eastern Tourist Home---a hotel business---as ' a mere discontinuance of an activity ' and is not such a finding wrong, unreasonable, also unwarranted so long as th .....

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..... under section 155 of the Act ?" The assessment year is 1975-76. The original assessment was completed on February 18, 1978, when the share income from the firm, Janatha Medicals, was adopted as unabsorbed depreciation of 1974-75 was carried forward and set off against the income for the assessment year in question. Subsequently, this was sought to be modified by initiation of action under sectio .....

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..... rated that the business was a composite one and it is recorded that this finding is not challenged before it by the Revenue. In conclusion, the Tribunal has held that mere discontinuance of an activity in a composite business will not disentitle the assessee to the benefit of carry forward and set off of unabsorbed losses and depreciation against the other incomes of the assessee. Additionally, th .....

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