COMMISSIONER OF INCOME TAX Vs. PARTAP SINGH S

JUDGEMENT

(1.) THE question framed for our consideration by the Income-tax Appellate Tribunal in this reference is -"Whether in the circumstances of the case, the loss of Rs. 12,762 in respect of the assessment year 1944-45 which was sustained by the assessee in the State of Indore was rightly allowed by the Tribunal to be adjusted against the profits from transactions in British India while computing the assessees income, profits and gains under the head profits and gains of business, profession or vocation ?"

(2.) THE assessee in this case is a one man firm named Partap Singh and Sons carried on by Partap Singh. In the assessment year in question he made certain profits on his business in British India but sustained losses amounting to Rs. 12,762 on certain business carried on by him in the State of Indore, and he sought to have this sum taken into account in calculating his taxable income. This concession was refused by the Income-tax Officer and the Appellate Assistant Commissioner, who relied on the decision of the Allahabad High Court in In re Mishrimal Gulabchand of Beawar. THE Appellate Tribunal, however, without quoting any decisions held that in computing the assessees profits and gains under the head of business, the result of all his business activities wherever they take place must be arrived at and section 14(2) (c) has nothing to do with the correct method of computing the income, profits and gains from business or under any other head mentioned in section 6. On the motion of the Commissioner of Income-tax the above question was framed and referred to this court.