Law:

Section:

JUDGMENT This is a reference by the Income-tax Appellate Tribunal, Bombay, under section 66(1) of the Indian Income-tax Act, 1922, hereinafter called the Act. Four questions of law are raised in the reference, three at the instance of the assessee and one of the Commissioner of Income-tax, Madhya Pradesh and Bhopal, Nagpur. 2. The assessee Seth Khushalchand Daga is a son of late Sir Bisesardas Daga. He received during the year ending Diwali of 1941 his share of assets and properties from the old firm of R. B. Bansilal Abirchand of Nagpur and then started business at Nagpur, Bikaner, Secunderabad and Shailu where the firm in the past had business. Bikaner, Secunderabad and Shailu were outside British India at the relevant time. The sources of the assessee's income in the year of account were speculation, allowance from Government as treasurers, house proper ties and dividends. 3. In the course of the assessment for the year 1942-43, a question of setting off the profits of the year of account against loss of the immediately preceding year came up for consideration by the Income- tax Officer. In paragraph 3 of his order, the Income-tax Officer observed : "Last year the assessee was in net loss of Rs. 53,078, which has been carried forward. It is to be split up in the proportion of the individual British Indian business loss, the foreign business loss and the share loss. The loss from the individual British Indian business was Rs. 2,62,012, and that from the foreign business Rs. 2,200. The share loss from the R.B.B.A. was Rs. 38,158. In this year the firm of R. B. Bansilal Abirchand stopped all business and there is no income or loss from that source. The loss to be set off will be Rs. 53,078 less Rs. 6,698=Rs. 46,380, (Rs. 45,994 from British Indian business and Rs. 386 from foreign business). " This order was confirmed in appeal by the Appellate Assistant Commissioner. When the matter came up before the Tribunal, it observed as below : "The third ground of appeal relates to the assessment made for the year 1941-42. For a long time Mr. Thakkar himself was not quite clear what was claimed by the third ground. Ultimately, he said that in so far as the computations…

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