BROOKE BOND AND COMPANY LIMITED NOW KNOWN AS BROOKE BOND LEIBIG LIMITED Vs. COMMISSIONER OF INCOME TAX WEST BENGAL 11 CALCUTTA

JUDGEMENT

(1.) This appeal by certificate granted by the High court of Calcutta is directed against a judgment of the division bench of the High court confirming on appeal the dismissal of the appellant's writ petition.

(2.) The appellant, Brooke Bond and Company Ltd. , now known as Brooke Bond Leibig Limited, is a sterling company carrying on business in tea with its head office in the United Kingdom. The appellant has invested in the shares of other tea companies in different parts of the world, and has a 100 per cent share-holding in an Indian subsidiary, Brooke Bond (India) Limited.

(3.) The appellant is assessed under the Indian Income Tax Act, and the relevant financial year is the previous year in relation to the corresponding assessment year. For the assessment year 1955-56 the appellant was assessed on its total world income by an assessment order dated 16/07/1957 on the basis of provisional figures of its business loss including depreciation, and its income from dividends. On the basis of those provisional figures it was assessed to a net loss of Rs. 31,33,647. 00. As its Indian income exceeded, its income outside India it was assessed as a resident. Meanwhile, on 28/03/1957 the appellant had already been assessed for the subsequent assessment year 1956-57 in the status of a non-resident, and its income of Rs. 53,11,958. 00 from dividends was assessed under the head Income from Other Sources'. It is obvious that the loss determined for the assessment year 1955-56 could not be carried forward and set off against the income for the assessment year 1956-57, as the latter assessment was made subsequent to the former.