{"id":57983,"date":"2026-02-08T17:28:45","date_gmt":"2026-02-08T11:58:45","guid":{"rendered":"https:\/\/itatonline.org\/digest\/?post_type=qa&#038;p=57983"},"modified":"2026-02-08T17:30:07","modified_gmt":"2026-02-08T12:00:07","slug":"applicability-of-section-79a-on-set-off-of-losses","status":"publish","type":"qa","link":"https:\/\/itatonline.org\/digest\/qa\/applicability-of-section-79a-on-set-off-of-losses\/","title":{"rendered":"Applicability of Section 79A on set-off of losses"},"content":{"rendered":"<p>Search and survey operations were carried out u\/s 132 of the Income-tax Act on M\/s. ABC Ltd.\u00a0 ABC had purchased some goods from XYZ Ltd., which were considered a bogus purchase.\u00a0 XYZ Ltd. bought the goods from M\/s. LMN Ltd.\u00a0 LMN Ltd. purchased the goods from my assessee.\u00a0 The income-tax case of my assessee was assessed u\/s 153C, and an addition of 10% of the purchases was made.\u00a0 However, the Assessing Officer did not allow the set-off of the brought forward losses by applying section 79A.<\/p>\n<p>Q1. Whether the AO is justified in making an addition @ 10%, when my books have not been rejected, and sales have been duly accepted, and the Gross Profit Margin of my assessee is only 0.10%?<\/p>\n<p>Q2. When the search and seizure operations were not carried out on me, is the AO justified in not allowing the set-off of the brought-forward losses?<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[1275],"qa_category":[23],"qa_tag":[113,202,1392],"class_list":["post-57983","qa","type-qa","status-publish","hentry","qa_expert-law-intern","qa_category-income-tax","qa_tag-search-and-seizure","qa_tag-search-assessment","qa_tag-section-79a"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/57983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=57983"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=57983"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=57983"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=57983"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=57983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}