Finance Act, 1969

Relief in respect of losses.

24.—(1) The following section is hereby substituted for section 89 of the Income Tax Act, 1967 :

“89.—(1) Where in any year of assessment the aggregate amount of the deficiencies, computed in accordance with section 81 (4), exceeds the aggregate of the surpluses as so computed, the excess may, on a claim being made in that behalf, be deducted from or set off, as far as may be, against the amount of profits or gains on which the person chargeable is assessed under Case V of Schedule D for that year, and any portion of the excess for which relief is not so given shall be carried forward and, so far as may be, deducted from or set off against the amount of profits or gains on which he is assessed under Case V of Schedule D for any subsequent year of assessment, and, if tax has been overpaid, the amount overpaid shall be repaid.

(2) Any relief under this section by way of carrying forward any portion of such excess as is referred to in subsection (1) shall be given as far as possible from the first subsequent assessment, and so far as it cannot be so given then from the next assessment and so on.”.

(2) (a) Where in any of the years of assessment 1963-64 to 1968-69—

(i) the aggregate amount of the deductions authorised by section 81 (4) of the Income Tax Act, 1967 , in relation to any lease of a duration not exceeding fifty years exceeded the amount of the rent to which a person became entitled, and

(ii) such excess, having been deemed to be such a loss as is mentioned in section 310 of the Income Tax Act, 1967 , was not relieved or was not fully relieved under that section,

then, any loss or portion of a loss not so relieved shall be carried forward and, as far as may be, deducted from or set off against the amount of the profits or gains on which that person is assessed under Case V of Schedule D for the year 1969-70 or any subsequent year.

(b) Any relief under paragraph (a) shall be given as far as possible from the assessment for the year 1969-70, and, so far as it cannot be so given, then from the assessment for the year 1970-71 and so on:

Provided that where, by reason of an insufficiency of profits or gains chargeable under Case V of Schedule D for any year, full relief in respect of any loss or portion thereof carried forward under paragraph (a) cannot be given by deduction from or set-off against the profits or gains so chargeable, that portion of the loss for which relief has not been so given shall, so far as may be, be deducted from or set off, against the amount of any profits or gains on which that person is assessed under Case IV of Schedule D for that year; and the balance of any loss so carried forward to that year for which relief cannot be given against profits or gains so chargeable for that year under the said Cases IV or V shall be carried forward to any subsequent year of assessment.