TARA DEVI BEHL Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THE following two questions of law for the assessment years 1976-77 and 1977-78 (being common for both the years) have been referred by the Income-tax Appellate Tribunal, Amritsar (hereinafter referred to as "the Tribunal") for the opinion of this court by drawing up a common statement of cases for both the years at the instance of the assessee :

(2.) THE assessee filed appeals to the Appellate Assistant Commissioner who disposed of the appeals by a common order dated March 13, 1978. The Appellate Assistant Commissioner held that though the firm had not dissolved it had ceased to carry on its business and the assessee had lost her right to carry forward and set-off of the losses suffered in United Oil Mills. The assessee carried two separate appeals before the Tribunal which were rejected. The Tribunal recorded a finding of fact: "in the case before us, it is the admitted position that the business of United Oil Mills was not continuing in the assessment years 1976-77 and 1977-78". It was held by the Tribunal that from this, it follows that the assessee was not carrying on that business in the two years and the proviso to Section 72 (1) of the Income-tax Act clearly debars the set-off of the losses under appeals. On an application made by the assessee, the two questions of law have been referred for both the assessment years by passing a consolidated order for the opinion of this court.

(3.) ACCORDINGLY , it is held that the assessee would not be entitled to the set off of the losses suffered by her in the earlier years from United Oil Mills only on the ground that she was carrying on the business activity of becoming a partner in different partnership concerns.