1995 (9) TMI 2 - SC - Income Tax

Whether the finding of the Tribunal that in applying section 79 of the Act only the business loss should be taken into account and not the unabsorbed depreciation or unabsorbed development rebate is erroneous in law - Held no because when s. 79 speaks of loss it does not include unabsorbed depreciation/unabsorbed development rebate.

Summary

The Supreme Court dismissed the appeal regarding the interpretation of section 79 of the Income-tax Act, 1961. The High Court clarified that only business loss should be considered under section 79, not unabsorbed depreciation or development rebate. The appeal was dismissed, with no costs.