TMI Blog1970 (4) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... nts according to the calendar year. In the year of account 1949, the company suffered a loss of Rs. 3,71,700 in the sale of shares of public limited companies. In proceedings for assessment of income-tax, for the assessment year 1950-51, the Income-tax Officer disallowed the claim to set off loss against the profits from transactions in other commodities in that year. The appeal filed before the Appellate Assistant Commissioner was unsuccessful. But the Appellate Tribunal upheld the claim of the company. In the meanwhile assessment for the year 1951-52 was completed, and the income of the company was computed at Rs. 1,00,777. In proceedings for assessment of income for the assessment year 1952-53 the Income-tax Officer computed the incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mber of commodities in which the company dealt in the ordinary course of business. There was, in the view of the Tribunal, " no element of diversity or distinction or separateness about the transactions in shares ". Accordingly, the Tribunal upheld the claim of the appellant company and directed that the loss be set-off under section 24(2) of the Indian Income-tax Act, 1922, then in force. The Tribunal referred the following question to the High Court of Calcutta : " Whether, on the facts and in the circumstances of the case, the business activities of the company, to wit, dealings in shares and its dealings in other commodities and selling agency on commission basis, constituted the same business within the meaning of section 24(2) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profession or vocation', and the loss cannot be wholly set-off under sub-section (1), the portion not so set off shall be carried forward to the following year and set off against the profits and gains, if any, of the assessee from the same business, profession or vocation for that year ; and if it cannot be wholly so set off, the amount of loss not so set off shall be carried forward to the following year, and so on ;..... " The section contemplated that the loss which could not be wholly set off against the other income under sub-section (1) could be carried forward to the following year and set off only against the profits and gains, if any, from the same business. There was difference of opinion among the High Courts as to the meanin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gment, the Tribunal was right in holding that the share business and other businesses carried on by the appellant company constituted the same business within the meaning of section 24(2) as that section stood before it was amended in 1955. Counsel for the Commissioner contended that the Commissioner had applied under section 66(2) to the High Court for calling for a statement of the case from the Tribunal on the following question : " Whether there was any evidence in support of the Tribunal's finding that there was complete unity of control and that shares formed a part of the commodities in which the assessee-company deals regularly from year to year in the ordinary course of its business ? " The High Court declined to make an o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
