COMMISSIONER OF INCOME TAX Vs. MADHUKANT M MEHTA

JUDGEMENT

(1.) These appeals by the revenue relate to entitlement to set-off u/s. 78(2) of the Income-tax Act, 1961 (the Act), in respect of losses sustained in the proprietary business carried on by Madhukant M. Mehta against the income of the assessee, a registered partnership firm. These appeals relate to the assessment years 1965-66 to 1971-72. In relation to the assessment years 1965-66 to 1969-70, the matter was considered by the Gujarat High Court in its judgment dated 12.8.1980 - CIT V/s. Madhukant M. Mehta, 1981 132 ITR 159, in Income-tax Reference No. 115 of 1975, whereby the following questions referred to it for its opinion by the Tribunal were answered against the revenue and in favour of the assessee :

(2.) Civil Appeal Nos. 94 to 98 (NT) of 1982, have been filed by the revenue against the said decision of the High Court on the basis of certificate of fitness granted u/s. 261 of the Act. The said judgment was followed by the High Court in its judgment dated 14.8.1980, in Income-tax Reference No. 121 of 1977, in relation to the assessment years 1970-71 and 1971-72. Civil Appeal Nos. 99 and 100 (NT) of 1982, have been filed against the said judgment.

(3.) The facts, briefly stated, are as follows :