E.K. Lingamurthy And Anr vs Settlement Commnr. (It&Wt)& Anr

The Supreme Court analyzed Section 158BB(4) of the Income Tax Act, 1961, clarifying that losses brought forward from previous years and unabsorbed depreciation cannot be set off against undisclosed income in block assessments. The Court held that there is a distinction between current losses and carried forward losses, emphasizing that the Settlement Commission's interpretation overlooked this difference. The judgment reinforces the self-contained nature of Chapter XIV-B of the Income Tax Act regarding undisclosed income computation.