Law: Income Tax Act, 1922

Section: 66A,6,24,24(1)(2)(3)

(a) Income-tax Act (XI of 1922)----S. 66-A-Reference to High Court - Objection against order of Income-tax Officer never raised before Appellate Tribunal and completely new point sought to be urged before High Court in reference, without notice to Commissioner of Income-tax--Such point cannot be entertained by High Court. (b) Income-tax Act (XI of 1922)----Ss. 24 & 6--Assesses is entitled to have his- loss of profits or gains in any year under any item mentioned in S. 6 to be set off against his income, profits or gains under any other bead in that year-Words "shall be entitled" in S: 24 give assesses an absolute right of having loss set off against any other item under S. 6-Assessee, if does not avail such entitlement or right, assessee then loses general right of getting loss set off against all items mentioned in S. b for next or succeeding year and thereafter-Assesses has limited right as given under S. 24(2) of getting loss set off under income for same head and from no other bead-Right of assessee given under S. 24(1) cannot be converted into a liability-Free reserves of assessee taxed and thereof effect of setting off loss against free reserves with result assessee getting a benefit of only 10% of tax whereas if allowed to carry on loss to next year it could have not a set off against that loss towards income from business of profession which would have been otherwise taxable at 5% then assessee in total effect suffered loss of saving 40 % of his future tax-Held, such arrangement was against spirit as well as clear words of S.24. (c) Income-tax Act (XI of 1922)- --S. 24(1)(2)(3)-Income-tax Officer merely entitled to notify loss as computed by him but such computation in itself is to be made subject to entitlement of assessee as contained in S. 24(1)(2)--S. 24(3) cannot be used as curtailing right and entitlement of assessee as given in S. 24(1)¬Computation of loss under S. 24(3) and its notice to assessee appear to be aimed to allow assessee to make choice under S. 24(1)(2) itself and therefore, subsection (3) of S. 24 does not override provisions of Ss. 24(1) (2) but it is rather subservient and ancilliary to them. (d) Interpretation of statutes-…

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