Law: Income Tax Rules, 1922

Section: 24(2),66(2), Schedule

Income-tax Act, 1922 -- Section 24(2) (before amendment in 1960) -- Set off of loss -- Same business -- Assessee-company engaged in business of aviation agency shipping agency and trade -- Business run by one and the same set of agency in the same premises, though in different sections -- Accounts maintained in separate sections ultimately brought to one set of account maintained for all business -- Same capital employed for various business -- Several businesses, whether constitutes the same business -- Held yes -- Test for determining whether several lines of activities constitute the same business -- JUDGMENT The judgment of the court was delivered by NOORUL ARFIN J.---On the direction of the High Court contained in its judgment dated 8th February, 1967, on the assessee's application under Section 66(2) of the Income tax Act, 1922, the Income Tax Appellate Tribunal has stated the following questions of law for the opinion of this Court:-- (a) Whether there is no material or evidence on record to support the Tribunal's finding that the assessee's business in the year under assessment and the year earlier to it was not the same business; (b) Whether the facts proved in this case did not warrant the inference drawn by the Tribunal that there was no interlacing or inter-connection between the aviation agencies line and other lines of business of the assessee; and (c) Whether the application of the test of inter-dependence to this case by the Tribunal was improper." 2. The reference relates to the assessment year 1956-57. The assessee, a limited Company incorporated under the Companies act, 1913, is in business since 1950 in several lines, that is, (i) aviation agency, (ii) shipping agency, and (iii) trade. In the return filed for the charge year 1954-55, a loss of Rs. 1,41,873.00 was claimed. In the following year a profit of Rs. 10,732.00 was shown. This profit was set-off against the loss of the earlier year. In the third year, which is the year under consideration, a profit of Rs. 22,929.00 was shown, and its set-off was claimed against the loss of the year 1954-55. The Assessing Officer refused this claim on two grounds, namely, (i) that the aviation agency…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492