TMI Blog1970 (4) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... and J. C. SHAH. JUDGMENT The judgment of the court was delivered by SHAH J.--- Messrs. J. P. Kanodia and Company is a firm registered under the Indian Income-tax Act, 1922. The partners of the firm were Smt. Shanti Devi and Badri Prasad. Three minors, Pardeep Kumar, Anand Prakash and Rajendra Prasad, were admitted to the benefits of the partnership. In proceedings for assessment of tax for the assessment year 1957-58, the Income-tax Officer rejected the claim of the firm to set off loss from certain speculative transactions aggregating to Rs. 22,234 and computed the income of the firm at Rs. 26,365. The Income-tax Officer was of the opinion that since the capital contributed by the partners and the minors who were admitted to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar of assessment. The order of Manchanda J. was confirmed in a special appeal by the Division Bench of the High Court. This appeal is filed by the Commissioner with certificate granted by the High Court. Sub-sections (5) and (6) of section 23 of the Income-tax Act, as they were in force in the year of assessment, read as follows : " (5) Notwithstanding anything contained in the foregoing sub-sections, when the assessee is a firm and the total income of the firm has been assessed under sub-section (1), sub-section (3) or sub-section (4), as the case may be,--- (i) the income-tax payable by the firm itself shall be determined ; (ii) the total income of each partner of the firm, including therein his share of its income, profits an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d families was plainly without jurisdiction. On the second contention not much need be said. The High Court purported to follow the judgment in Jagannath Mahadeo Prasad's case, but that judgment has been expressly overruled by this court in Commissioner of Income-tax v. Jagannath Mahadeo Prasad. This court held disagreeing with Jagannath Mahadeo Prasad's case, that in the computation of the income, profits and gains of the year of assessment under section 10(1) of the Indian Income-tax Act, the assessee is not entitled to set off speculative losses against profits from other business activities of the same year. The appeal is partially allowed. The order of the High Court setting aside the order of the Commissioner of Income-tax refus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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