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

The Supreme Court analyzed the interpretation of Section 158BB(4) of the Income Tax Act, 1961, concerning the computation of undisclosed income during a block period. The Court held that there is a distinction between current losses and carried forward losses, and similarly between current depreciation and carried forward unabsorbed depreciation. The Court concluded that the Settlement Commission's judgment failed to recognize this conceptual difference, thereby impacting the assessment of undisclosed income under the specified provisions of the Act.