TMI Blog1993 (9) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... 61, were not attracted in the instant case and the assessee-company is entitled to the claim of set off of carried forward business losses of the assessment years 1969-70 and 1970-71 amounting to Rs. 1,37,916 against the income computed for the assessment year under consideration to the tune of Rs. 1,83,360 ? 2. Whether the finding of the Appellate Tribunal that the provisions of section 79 of the Act were not applicable and, consequently, the assessee was entitled to a set off of carried forward business losses of the assessment years 1969-70 and 1970-71 amounting to Rs. 1,37,916 against the income computed for the assessment year in question to the tune of Rs. 1,83,360 is correct in law and sustainable from the material on record ?" F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dering all these facts, the Commissioner arrived at the conclusion that it has not been established that the purpose of this change in ownership was to avoid or reducing any liability to tax. He, therefore, held that prima facie there is no reason for invoking the provisions of section 79 and denying the benefit to the assessee. This view of the Commissioner of Income-tax is confirmed by the Tribunal in appeal. The Tribunal observed that the provisions of section 79 were not applicable as there was no change in shareholding in the previous year because the relevant assess ment year is 1975-76 whereas the change took place in the assessment year 1970. The Tribunal further observed that in the year 1971-72, the Income-tax Officer was convince ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... careful consideration we are of the opinion that the conditions are intended to operate as alternative to one another. If the terms of either clause (a) or clause (b) are satisfied, the disqualification suffered by a company, by reason of a change in the shareholding in the previous year, is removed, and the company is entitled to the benefit of the provisions in Chapter VI relating to the carry forward and set off of losses. The benefit is available notwithstanding the change in the shareholding in the previous year, if shares representing not less than 51 per cent. of the voting power remain beneficially held by the same persons on the relevant date. Similarly, the benefit is available notwithstanding the change in the shareholding in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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