COMMISSIONER OF INCOME TAX Vs. ACME PAPER LIMITED

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the Income-tax Act, 1961, at the instance of the Revenue and the following question of law has been referred by the Tribunal for answer to this court :

(2.) THE brief facts giving rise to this reference are thus : THE assessee is a public limited company. Its shareholding changed hands some time prior to the assessment year 1978-79. At the time of such transfer of shares, the company had losses which the assessee claimed to carry forward in the accounting period under consideration, which falls after the transfer of the shares in question. THE Income-tax Officer failed to carry forward the losses of earlier years, i.e., 1978-79 and earlier, but he made no mention in his order either of the losses of earlier years or of his failure to carry forward the same.

(3.) WE have gone through the records. The Tribunal while disposing of the appeal of the Revenue has observed :