HINDUSTAN AERONAUTICS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Bangalore Bench, has referred the following two questions under s. 256(1) of the I.T. Act for the opinion of this court :

(2.) THE essential facts behind the legal formulation are as follows :

(3.) THAT assessment order was affirmed by the AAC and also by the Income-tax Appellate Tribunal. The Tribunal, on a consideration of the various clauses in the said Government Order and applying the ratio of the decision of the Privy Council in Indian Iron and Steel Company Ltd. v. CIT [1943] 11 ITR 328, held that the Explanation to clause 3 of the Amalgamation Order could not be taken advantage of by the assessee-company to carry forward the losses and unabsorbed depreciation of Hindustan Aircraft Ltd., and that s. 78(2) also does not enable the assessee company to carry forward such losses and unabsorbed depreciation allowance of Hindustan Aircraft Ltd. since it was not a case of succession by inheritance.