COMMISSIONER OF INCOME TAX Vs. VALLIAMMAI ACHI

JUDGEMENT

(1.) -

(2.) THE assessee who is a resident of Pallathur in the Madras Presidency owns a saw mill at Gyothingauk in Burma. In the account year, that is the year commencing from the 1st April 1936, the saw mill business resulted in a loss of Rs. 8,663 and her income consisted solely of interest received from investments. For the purpose of assessment of income-tax she sought to set off the loss sustained in the saw mill business against the profits from her investments. THE Income-tax Officer refused to allow her to do so on the ground that on the 1st April 1937 Burma had ceased to be part of British India, and the loss having been sustained outside British India it could not be set off. On these facts the Commissioner of Income-tax has referred to the Court the following question :- "Whether the decision of the Assistant commissioner that the loss of Rs. 8,663 incurred by the Petitioner in Burma in the year of account 1936-37 is not allowable as a deduction in the year of assessment 1937-38 is correct in law