COMMISSIONER OF INCOME TAX Vs. SAROJ AGARWAL SMT

JUDGEMENT

(1.) THIS is a reference under Section 256(2) of the Income-tax Act, 1961. At the instance of the Commissioner of Income-tax, the Appellate Tribunal has referred the following question for the opinion of this court:

(2.) ASSESSEE in this case is Smt. Saroj Agarwal and the assessment year in question is the year 1962-63.

(3.) THE assessee then went up in appeal before the Appellate Tribunal. THE Appellate Tribunal observed that the circumstances appearing in the case indicated that Smt. Saroj Agarwal was admitted to various partnerships after the death of Sri Prem Shanker because she was his heir. After the death of Prem Shanker, various firms in which he was a partner were not dissolved but they were continued. In the end, it held that Smt. Saroj Agarwal succeeded to the deceased, Prem Shanker, in her capacity as partner by inheritance. THE Appellate Assistant Commissioner, therefore, was not right in holding that the speculation losses suffered by Prem Shanker when he was a partner in the respective firms could not be carried forward and set off against speculation profits of the assessee and/ or of the minor son for the assessment year under appeal.