NARAIN SINGH Vs. COMMOSSIONER OF INCOME TAX DELHI

JUDGEMENT

(1.) , J. :

(2.) THE dispute relates to the assessment year 1951-52, Ae relevant previous year being the year ended on 31st March. 1951. In the accounting years relevant to the assessment years 1949-50 and 1950-51, i. e., the two years preceding the year of assessment, the assessee took certain contracts regarding the sale of liquor in his individual name and sustained losses of Rs. 48,619.00 and Rs. 1892.00 respectively. During the assessment year 1951-52 with which we are concerned, the assessee with ten other persons, took another liquor contract and the business was carried on by the partnership under the name and style of Dulat Ram, Hans Raj and Company. This partnership was registered for the assessment year 1951-52 and, therefore, the question has to be answered in the light of this fact. THE assessee's share in the said registered firm was 11 pies in a rupee and during the year, his share of profits came to Rs. 20,414.00 THE assessee claimed that he was entitled to carry forward and set off the losses assessed in the assessment year 1949- 50 and 1950-51 to the extent of Rs. 20,414.00 against his share of the profit from the registered firm assessable in Ae assessment year 1951-52. THE Income Tax Officer rejected the claim of Ae assessee, but the Appellate Assistant Commissioner in appeal allowed the same. THE Income Tax Appellate Tribunal, on an appeal by the revenue, decided that there was no identity between the business which was carried on by the assessee alone in the assessment years 1949- 50 and 1950-51 and the business which was carried on by the partnership in the name of Daulat Ram, Hans Raj and Company and consequently, the assessee was not entitled to carry forward the losses. At the instance of the assessee, the Income Tax Appellate Tribunal stated the case to this Court and referred the following question of law: