Law:

Section:

Section 72 of the Income-tax Act, 1961 - Losses - Carry forward and set off of business losses - Assessment year 1993-94 - Assessing Officer disallowed assessee's claim for set-off of carried-forward business loss against assessee's income from interest on securities - Commissioner (Appeals) allowed assessee's claim - Tribunal set aside order of first appellate authority and restored order of Assessing Officer - Whether since Tribunal had ascertained legal principles governing issue of set-off of carried-forward business loss of earlier years against interest income of current year and since neither Assessing Officer nor first appellate authority had gone into factual details regarding claim made, appropriate course for Tribunal was to remit matter to Assessing Officer for passing fresh assessment order with reference to legal principles discussed by Tribunal - Held, yes [Matter remitted to Assessing Officer] FACTS In the return filed for the assessment year 1993-94, the appellant sought to adjust/deduct the carried-forward business loss of the earlier years against income from interest on securities. According to the Assessing Officer, the set-off of carried-forward business loss against the income under other sources was not permitted under section 72 and he, therefore, disallowed the assessee's claim. On appeal, the Commissioner (Appeals) allowed the appeal by holding that the appellant was entitled to set-off of the business losses brought forward from the relevant assessment year. On the revenue's appeal, the Tribunal considered the legal principles regarding the set-off of carried-forward business loss from the interest income of the relevant year and set aside the order of the first appellate authority and restored the order of the Assessing Officer as the facts corresponding to the proposition advanced by the assessee had not been proved before it. On assessee's appeal : HELD Since the Tribunal had ascertained the legal principles governing the issue of set-off of carried-forward business losses of the earlier years against the interest income of the relevant year and since neither the Assessing Officer nor the first appellate authority had gone into…

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