COMMISSIONER OF INCOME TAX Vs. RAMGOPAL KANIYALAL

JUDGEMENT

(1.) THIS reference under Section 66(1) of the Indian Income-tax Act, 1922, has been made by the Income-tax Appellate Tribunal, Bombay, at the instance of the Commissioner of Income-tax, New Delhi. The assesses did not appear when the case was heard.

(2.) THE question which has been referred to us for opinion is:

(3.) WE may state that till 1954 there was another proviso to this section which provided for the adjustment of loss sustained in business outside the taxable territories. This proviso was interpreted consistently to come into p!av only after the profits and losses had been computed under each head separately in accordance with Section 10 of the Act. In other words, it was held that the losses incurred in outside territories could be adjusted against the gains in taxable territories in ascertaining the net income from business, profession or vocation under the fourth head in Section 6, notwithstanding the contrary provision implied in this proviso to Section 24. See Commissioner of Income-tax v. C. P. Syndicate, AIR 1953 Nag 77 and Commissioner of Income-tax, Punjab v. Hira Mall Narain Dass 1953-24 ITR 199: (AIR 1953 Punj 284).