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TMI Blog2002 (8) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... er and the appellate authority had rejected the assessee's claim that the carried forward losses from the assessee's business should be set off against his dividend income during the assessment year as the dividends were derived from the shares which were held as stock-in-trade. On a further appeal to the Tribunal, the Tribunal held that the carried forward losses of the years 1977-78 and 1978-79 were required to be set off against the income from dividend, to the extent of that income, as the shares were held by the assessee as stock-in-trade. Learned counsel for the Revenue submitted that that view of the Tribunal is erroneous. His submission was that the decision on which the assessee had relied before the Commissioner had been rightly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the business, profession or vocation in which the loss was originally sustained continued to be carried on by him in that year; and (iii) if the loss in either case 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, but no loss shall be so carried forward for more than eight years." Section 24(1) of the 1922 Act provides that where the assessee sustains a loss of profits or gains in any year under any of the heads mentioned in section 6, he shall be entitled to have the amount of the loss set off against his income, profits or gains under any other head in that year. Section 71 of the Income-tax Act, 1961, is similar to section 24(1) of the 1922 Act and permits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 24(2) of the Act if the shares on account of which the dividends were received formed part of the assessee's trading assets. It is well settled by the decisions of this court that section 6 of the Act classifies the taxable income under the several heads but the scheme is that income-tax is one tax and section 6 only classifies the taxable income under different heads for the purpose of computation of the net income of the assessee. While sub-section (1) of section 24 provides for setting off the loss under one of the heads mentioned in section 6 against the profits under a different head in the same year, sub-section (2) provides for the carrying forward of the loss for one year and setting off the same against the profits or gain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me-tax Act, 1961, having regard to the fact that the language employed in section 72(1) is not materially different from what had been provided in section 24(2) of the 1922 Act. Section 72(1) in its opening part refers to the head "Profits and gains of business or profession" and the loss determined under that head not being set off against income under any other head of income in accordance with the provisions of section 71 and permits the carry forward of such loss to later assessment years. The set-off in those assessment years is to be "against the profits and gains, if any, of any business or profession carried on by him..." Section 24(2) of the 1922 Act in sub-clause (ii) refers to the setting off of such carried forward loss against ..... X X X X Extracts X X X X X X X X Extracts X X X X
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