COMMISSIONER OF INCOME TAX Vs. SUBHULAXMI MILLS LIMITED

JUDGEMENT

(1.) In this case, certificate has been granted by the High Court u/s. 261 of the Income-tax Act, 1961, only with respect to question Nos. 2, 3 and 4, which read thus :

(2.) Mr. J. Ramamurthy, the learned senior counsel for the revenue, states fairly that so far as question Nos. 3 and 4 are concerned, they are concluded against the revenue by the decision of this Court in CIT V/s. Italindia Cotton Co. (P.) Ltd., 1988 174 ITR 160. The said decision in fact expressly approves the decision now under appeal herein.

(3.) So far as question No. 2 is concerned, the question is whether in applying sec. 79 of the Act, only the business loss should be taken into account and not the unabsorbed depreciation or unabsorbed development rebate. The High Court has answered the question saying that when sec. 79 speaks of loss, it does not include unabsorbed depreciation or unabsorbed development rebate. We agree with the High Court. The appeals are, accordingly, dismissed. No costs.