Section 79A of the Income Tax Act
Income-tax Act, 2025: s.120
Section 79A of the Income-tax Act, 1961 corresponds to section 120 (No set off of losses against undisclosed income consequent to search, requisition and survey) of the Income-tax Act, 2025.
Read section 120 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 79A is CIT v. Krishna Sahakari Sakhar Karkhana Limited (27 Taxmann.com 162), cited in 263 of the 35 judgments on BharatTax that turn on this section.
Leading authorities on Section 79A
The Supreme Court restores the matter for ascertaining whether the difference between the fair market price and concessional price of sugar supplied by a cooperative sugar factory to its members should be added to its total income, considering relevant factors like state cooperative society directions.
The Supreme Court in CIT v. Krishna SSK establishes principles for de novo assessment of co-operative sugar factories concerning the tax implications of sugar sales to members, acknowledging that such sales are regulated under Section 79(A) of the Maharashtra Co-operative Societies Act, 1960. These principles guide the computation of total income from these regulated transactions.
