2001 (4) TMI 78

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..... ead with section 144B of the Income-tax Act, 1961, on a total income of Rs. 10,44,680. In computing the income, the Assessing Officer has allowed the set off of earlier years' losses, from the assessment years 1973-74, to 1980-81 amounting to Rs. 11,34,420. In appeal before the Commissioner of Income-tax (Appeals), the Commissioner of Income-tax (Appeals) has enhanced the income under section 251(1)(a) of the Act and the carry forward and set off of loss of Rs. 11,34,420 which was allowed by the Assessing Officer has been disallowed. The Income-tax Officer was directed to recompute the total income disallowing the loss of Rs. 11,34,420. In appeal before the Tribunal, the Tribunal has taken the view that though the contract was completed i .....

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..... p;      1976-77           1,14,570        1975-76           1,73,267        1974-75           1,69,978        1973-74           1,51,518." The facts are not in dispute that after enhancement notice under section 251 of the Act, the Commissioner of Income-tax (Appeals) heard the assessee and has taken the view that when the assessee has not carried on the same business in the previous year relevant to the assessment year in hand .....

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..... ssessment year under consideration can be set off against the income of the assessment year 1981-82. The relevant provision for carry forward and set off of business loss is section 72. A proviso to clause (i) to sub-section (1) of section 72 provides that the business or profession should be continued in the previous year relevant to the assessment year for allowing the set off of earlier years' carried forward loss. The relevant provision reads as under : "Provided that the business or profession for which the loss was originally computed continued to be carried on by him in the previous year relevant for that assessment year." When the assessee has not carried on any business in the previous year relevant to the assessment year in hand .....

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