9911796707
TMI Blog2005 (11) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... licant-Revenue to even suggest that these findings of fact recorded by the Tribunal are not correct, except for making a faint effort that the Tribunal had not found that there was common place of business. - at this stage, it is not possible to raise a presumption that the place of business was not common, nor is it necessary to send the matter back for this limited purpose - held that the Tribunal was justified in holding that the new business carried on by the assessee was the same business as in the earlier years and the assessee was entitled to the benefit to carry forward and set off accumulated losses - - - - - Dated:- 24-11-2005 - Judge(s) : D. A. MEHTA., MS. H. N. DEVANI. JUDGMENT The judgment of the court was delivered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e accumulated losses pertaining to the textile unit which had been sold off. In the light of the aforesaid fact situation, Mr. M.R. Bhatt, learned senior standing counsel appearing on behalf of the applicant-Revenue, invited attention to the provisions of section 72(1)(i) and the proviso thereunder to submit that only in the event the assessee continued the business for which the loss had originally been computed would the assessee get the benefit under the provision. That the Tribunal had committed an error in granting the benefit when, admittedly, the entire unit by which the assessee manufactured cloth was sold out, and thus the subsequent activity was entirely a new and distinct business. In support of the proposition, he placed relia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a loss, the whole loss (subject to other provisions of Chapter VI) may be carried forward to the following assessment year and shall be set off against the profits and gains of any business carried on by the assessee and assessable for that subsequent year. The proviso thereafter imposes a further condition to the effect that the business for which the loss was originally computed is continued to be carried on by the assessee in the previous year relevant for the following assessment year. Thus, the scheme of the Act envisages that, in the first instance, under section 71 of the Act the loss incurred by an assessee can be set off against income from another head subject to fulfilment of the requisite conditions. That only the balance loss w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the loss was incurred. That involves consideration of the question whether the business carried on by the assessee is the same which he was carrying on when he suffered a loss." After staring thus, it is laid down that for the purpose of determining whether the business is the same a fairly adequate test would be whether there was inter-connection, interlacing, inter-dependence and unity by the existence of common management, common business organisation, common administration, common fund and a common place of business. In the facts of the case before the apex court the assessee was originally importing certain articles from abroad which business came to be discontinued and the assessee started exporting articles manufactured in India to ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
