| Case ID |
262d26c0-a2fc-4cd9-b862-d9d345563041 |
| Body |
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| Case Number |
CIVIL APPEAL Nos. 382-383 OF 2009 |
| Decision Date |
Jan 22, 2009 |
| Hearing Date |
|
| Decision |
The Supreme Court of India held that the block assessment under Section 158BB of the Income Tax Act allows for the aggregation of income/loss of each previous year within the block period. The Settlement Commission had erred in disallowing the application of the assessee for set-off of inter se losses and depreciation accruing in previous years against income assessed in other previous years within the same block period. The decision of the High Court and the Settlement Commission was set aside, and the matter was remitted for fresh computation of the undisclosed income under Section 158BB for the block period in question. The appeals filed by the assessee were allowed. |
| Summary |
In the case of E.K. Lingamurthy v. Settlement Commissioner, the Supreme Court of India addressed the interpretation of Section 158BB of the Income Tax Act, 1961, concerning block assessments and the computation of undisclosed income. The court clarified that brought forward losses and unabsorbed depreciation should be excluded while aggregating total income for the block period. This ruling emphasized the importance of correctly applying tax provisions during assessments, ensuring that taxpayers could set off losses against income assessed in prior years within the block. The decision is significant for tax law as it establishes clearer guidelines for the treatment of undisclosed income and losses in block assessments, impacting future tax litigation. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
S.H. Kapadia,
Aftab Alam
|
| Lawyers |
Not available
|
| Petitioners |
E.K. Lingamurthy
|
| Respondents |
Settlement Commissioner (IT&WT)
|
| Citations |
2009 SLD 1057,
(2009) 178 TAXMAN 116
|
| Other Citations |
E.K. Linga Murthy v. Settlement Commission [2008] 174 Taxman 298
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
158BB
|