“Section 59(2)”
The decision most relied on for Section 59(2) is CIT v. Manmohan Das (59 ITR 699), cited in 47 judgments on BharatTax.
Leading authorities on Section 59(2)
The eligibility for an assessee to carry forward and set off losses, including capital losses, against future income is determined by the Assessing Officer in the year the set-off is claimed, not in the year the loss was incurred.
Assessment proceedings initiated against a deceased person are void. Once an assessee dies, assessment proceedings can only continue in the name of their legal representative, to the extent of the deceased's estate.
Section 72 of the Income Tax Act, 1961, deals with the carry forward of business losses and does not encompass the carry forward of depreciation, which is provided for under Section 32(2).
Interest earned by a cooperative society from deposits with cooperative banks and nationalized banks is eligible for deduction under Section 80P(2)(a) of the Income Tax Act. Such interest is considered attributable to the business of the cooperative society, especially when deposits are statutorily required.
Interest earned by a cooperative society on fixed deposits with a bank or co-operative society is eligible for deduction under Section 80P(2)(a)(iii) if it is directly linked to and attributable to the society's primary activity of marketing agricultural produce grown by its members.
Interest earned by co-operative societies on fixed deposits with banks and other co-operative societies is includible in their total income, unless it falls within the specific exemptions provided by Section 80P(2) of the Income Tax Act.
Compensation received for the cancellation of a distribution agreement, which leads to the impairment of the profit-making apparatus and sterilization of the source of income, is considered a capital receipt and exempt from tax.
Profits derived from forward contracts entered into to avoid the risk of loss due to foreign exchange fluctuation are to be assessed as speculative profit and are not considered part of export turnover eligible for deduction under Section 10B, especially when the contracts are not isolated transactions.
