COMMISSIONER OF INCOME TAX Vs. TRILOKCHAND KALYANMAL

JUDGEMENT

(1.) THIS is a reference under Section 66 (1) of the Indian Income-tax Act at the instance of the Commissioner, Income-tax, made by the Appellate Tribunal, Bombay. It arises out of the assessment made on M/s. Trilokchand Kalyanmal of Indore, a Hindu undivided family, in respect of the assessment year 1950-51. The question referred to for our opinion is as follows:

(2.) DURING the material period the assessee had business activities in Indore, Ujjain and Bombay, which included trading in commodities and conducting the business of the managing and selling agents of the Kalyanmal Mills Ltd., Indore. It derived income from various sources in Part A and Part B States and the income was taxable under the Indian Income-tax Act read with Part B States (Taxation Concessions) Order 1950. In the year of account, the business in Part A States resulted in a loss of Rs. 9156/ and there was also a loss in business in Part B States, amounting to Rs. 1,19,026.

(3.) IN our judgment, the learned Advocate-General is right in his grievance that the question framed by the Tribunal for decision fails to bring out the real point of decision. On the facts and circumstances mentioned in the statement of case submitted by the Tribunal, the question is not whether dividend income from companies registered in Part B States is exempt from taxation under paragraph 12 of the Order of 1950 when the assesses incurred business loss in Part B States.