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TMI Blog1987 (10) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment years 1975-76 to 1981-82 and loss from business in India aggregating to Rs. 74,858 making a total of Rs. 3,08,181. In the assessment year 1982-83 now under consideration, there was a positive income from business in India of about Rs. 2 lakhs. While the ITO agreed to set off the brought forward loss from Indian business of Rs. 74,858, he refused to set off the foreign brought forward loss of Rs. 2,33,181. it is not in dispute that the Malaysian business was continued to be carried on in the previous year relevant to this agreement year. However, in this year the assessee became a non-resident and was assessed in the status of "non-resident". Therefore, the foreign income is not into consideration. The submission of the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed against income in subsequent year from a taxable source." 2. The provisions of sec. 72 (1) which deal with carry forward and set off of business losses, in so for as they are relevant, read as under : "72 (1). Where for any assessment year, the net result of the computation under the head 'Profits and gains of business or profession' is a loss to the assessee, not being a loss sustained in a speculation business, and such loss cannot be or is not wholly set off against income under any head of income in accordance with the provisions of section 71, so much of the loss as has not been set off or, where the assessee has income only under head 'Capital gains' (relating to capital assets other then short-term capital assets) and has exer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red in a year in which the assessee was a resident. There was the possibility of the loss being carried forward and absorbed and on a plain reading of the statute, even if the status changed, there was also the permissibility of such set off. We are, thereof, of the view that the interpretation which we have placed does not in any way go against the ratio of the judgement of the Supreme Court referred to. We would, for the sake of completeness, state that the assessee had also relied on a decision of the Tribunal in ITA NO. 287/Mds/34 dt. 30th April, 1985 in which the conclusion arrived at was similar. The result is that we have to agree with the findings of the CIT (A) and the appeal of the Revenue is dismissed. - - TaxTMI - TMITax - I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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