Section 22 - Amendment of Section 72 - Finance (No. 2) Act, 1967

22. Amendment of Section 72 In section 72 of the Income-tax Act, - (i) in sub-section (1), the following proviso shall be added at the end, namely :- Provided that where the whole or any part of such loss sustained in any such business as is referred to in section 33B which is discontinued in the circumstances specified in that section, and, thereafter, at any time before the expiry of the period of three years referred to in that section, such business is re-established, reconstructed or revived by the assessee, so much of the loss as is attributable on such business shall be carried forward to the assessment year relevant to the previous year in which the business is so re-established, reconstructed or revived, and - (a) it shall be set off against the profits and gains, if any, of that business or any other business carried on by him and assessable for that assessment year; and (b) if the loss cannot be wholly so set off, the amount of loss not so set off shall, in case the business so re-established, reconstructed or revived continues to be carried on by the assessee, be carried forward to the following assessment year and so on for seven assessment years immediately succeeding. ; (ii) in sub-section (3), after the words No loss , the brackets, words and figure [other than the loss referred to in the proviso to sub-section (1) of this section] shall be inserted.