TMI Blog1962 (4) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 30,255. During the same accounting year corresponding to that assessment year 1955-56, he carried on business also in beedi leaves in partnership with three others. That business was started on April 1, 1954. The two partners in the first partnership were also partners in this second partnership along with two others, the shares of each of the partners in the two partnerships being equal. For the assessment year 1955-56, the assessee also carried on business in partnership with others in timber and gulmoha. The total loss sustained by him for the assessment year 1955-56 was ₹ 24,532. The first partnership consisting of the assessee and another partner, which carried on business in beedi leaves, was dissolved on March 31, 1955, but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... though in beedi leaves, is not the same business as that carrried on by the dissolved firm, though the dissolved firm also carried on business in beedi leaves. This view was upheld in appeal by the Appellate Assistant Commissioner of Income-tax. But, on further appeal by the assessee, the Income-tax Appellate Tribunal, Hyderabad Bench, by its order dated October 27, 1961, in ITA No. 11196 of 1960-61 accepted the contention of the assessee. The Tribunal held that the business carried on by the firms, one consisting of two partners and the other consisting of these two partners and two others, is the same business carried on by the assessee in beedi leaves and that, since both the firms were registered firms, the assessee is an individual. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s where the assessee had no other head of income shall be carried forward to the following year, and (i)where the loss was sustained by him in a business consisting of speculative transactions, it shall be set off only against the profits and gains, if any, of any business in speculative transactions carried on by him in that year; (ii)where the loss was sustained by him in any other business, profession or vocation, it shall be set off against the profits and gains, if any, of any business, profession or vocation carried on by him in that year provided that the business, profession or vocation in which the loss was originally sustained continued to be carried on by him in that year; . The argument of Sri Kondaiah, the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prescribed by section 24(2)(ii) is satisfied and that the assessee is entitled to the set-off claimed by him. Reference is made to section 2, clause (4), of the Act which defines Business as including any trade, commerce or manufacture, or any adventure or concern in the nature of trade, commerce or manufacture . Both the learned counsel appearing in the case stated that there is no decision on the point. The two partnerships referred to above were registered under the Income-tax Act as already mentioned. When a firm carries on business, it is a business carried on by the partners of that firm and the individual partners of the firm are assessed to tax. When the profits of a registered firm are ascertained, the assessee, for the pu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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