RANJIT KR BANERJEE Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) In this Income-tax Reference the following question is for determination by this Court:--

(2.) The facts Riving rise to the above question lie within a very small compass. The assessee is an individual. The assessment year is 1955-56. The relevant accounting year is the financial year 1954-55 During the relevant accounting year the assessee was a partner in an unregistered firm Messrs S. B. Production having one-half share therein. The Income-tax Officer had assessed this unregistered firm and computed its total loss at Rs. 1,01,174. Thus the assessee's share of loss comes to Rs. 50,587. Apart from this partnership in this unregistered firm, this assessee had income from other sources like salary, house property and dividends. The total income from these other sources came to Rs. 34,066. After deducting the earned income relief allowable in his case the assessee's total income was assessed at Rs. 31.786.

(3.) Now the assessee claimed to set off of the loss in the unregistered firm amounting to Rs. 50,587 against his income from salary, property and other sources.