Meaning of “Continued”

The meaning of continued under section 70 to 79 of the Income Tax Act is not defined in the act itself. But we can take guidance from decisions by various high courts. Here are excerpts of courts orders in which the Hon’ble High Court tried to explain the meaning of continued.

Meaning of continued defined by court

The phrase ‘continued‘ used in section 70 to 79 of the Income Tax Act came up before hon’ble Bombay High Court in Hiralal Jeramdas vs. CIT [1965] 58 ITR 1 (Bom.) and it explained.

Meaning : It is true that one of the shades of the meaning of the word ‘continue’ is to resume, and one of the shades of the meaning of the word ‘resume’ is ‘to take up a thing after an interruption’. But having regard to the different shades of meaning of both these words, the main idea conveyed is continuation of a thing without a break. Even the word ‘resume’ conveys an idea of continuing or taking up a matter after an interruption but not after having given it up. The idea of starting a thing after having given it up is more aptly conveyed by the word ‘restarting’ than resuming.

Section 70 of Income Tax Act

Set off of loss from one source against income from another source under the same head of income.

70.(1) Save as otherwise provided in this Act, where the net result for any assessment year in respect of any source falling under any head of income, other than “Capital gains”, is a loss, the assessee shall be entitled to have the amount of such loss set off against his income from any other source under the same head.

(2) Where the result of the computation made for any assessment year under sections 48 to 55 in respect of any short-term capital asset is a loss, the assessee shall be entitled to have the amount of such loss set off against the income, if any, as arrived at under a similar computation made for the assessment year in respect of any other capital asset.

(3) Where the result of the computation made for any assessment year under sections 48 to 55 in respect of any capital asset (other than a short-term capital asset) is a loss, the assessee shall be entitled to have the amount of such loss set off against the income, if any, as arrived at under a similar computation made for the assessment year in respect of any other capital asset not being a short-term capital asset.

In this article, you can get guidance from high courts on the meaning of continued under section 70 to 79 of the Income Tax Act.

Updated up to Finance Act 2021