TMI Blog1960 (11) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... and 144 of 1958. - - - Dated:- 17-11-1960 - Judge(s) : J. L. KAPUR., M. HIDAYATULLAH., J. C. SHAH JUDGMENT The judgment of the court was delivered by HIDAYATULLAH, J.---These are two consolidated appeals by special leave. The first is directed against an order of the Income-tax Appellate Tribunal, Calcutta Bench, dated March 15, 1955, and the other against an order of the Calcutta High Court dated April 27, 1956, declining to ask for a statement of the case under section 66(2) of the Indian Income-tax Act. The facts are as follows: Setabgunj Sugar Mills Ltd. is the appellant. This company was incorporated in 1934, and was established to take over some sugar mills run by a firm. Included in the objects for which the compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that these losses were of the same business, and that section 24(2) of the Indian Income-tax Act applied. This contention was not accepted. On appeal to the Appellate Assistant Commissioner, the contention of the company was accepted. The Commissioner of Income-tax then preferred an appeal before the Income-tax Appellate Tribunal (Calcutta Bench), which was allowed. The Tribunal gave reasons why the various activities of the company could not be construed as the same business for the application of section 24(2). The company then asked the Tribunal to make a reference to the High Court on four questions of law which, it stated, arose out of the Tribunal's order. The Tribunal declined to make a reference. The company next moved the High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tters bearing on the unity of the business have to be investigated, such as unity of control and management, conduct of the business through the same agency, the inter-relation of the businesses, the employment of same capital, the maintenance of common books of account, employment of same staff to run the business, the nature of the different transactions, the possibility of one being closed without affecting the texture of the other and so forth. When, however, the true facts have been determined, the ultimate conclusion is a legal inference from proved facts, and it is one of mixed law and fact, on which depends the application of section 24(2) of the Act. In our opinion, a question of law did arise in the case, on which the High Court s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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