TaxTMI 
TaxTMI 
1960 (4) TMI 66
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....ts with the Hindu undivided family, Shiamlal Chimanlal of Agra. In their assessments for 1945-46 as "individuals" each of the applicants was assessed on income under three heads: (1) property, (2) share in the abovementioned registered firm, and (3) interest received from the abovementioned joint family. The figures are as follows: Head Assessee Kapoorchand. Assessee Chhail Behari Lal. 1. Property 3,823 5,222 2. Share from registered firm 9,578 9,578 3. Other sources (Interest from the Hindu undivided family.) 4,598 5,634 17,799 20,434 Each of the applicants had withdrawn from the firm ₹ 2,50,000 to buy shares in the Bijli Cotton Mills Ltd. and paid to the firm a sum of ₹ 6,688 as interest in the relevan....
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....the following question of law for determination by the High Court: "Whether the assessee in each case is entitled to a deduction of the sum of ₹ 6,688 being interest paid during the relevant previous year on money borrowed to buy shares in the Bijli Cotton Mills Ltd., which shares yielded no income, from his other income, profits and gains, in order to arrive at his correct taxable income?" 4. The draft statement of the case was placed on the table. The Commissioner makes no suggestions. The assessee suggests the correction of a slip, which is made. The statement of the case will now be submitted to the High Court. J. S. Gupta, for the assessee Gopal Behari, for the Commissioner JUDGMENT The judgment of the court was d....
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.... it should be held that each of them suffered a loss to the extent of ₹ 6,688 and that loss should be set off under section 24(I) of the Income-tax Act against their income from the other heads which has been mentioned above. The Income-tax Appellate Tribunal refused to allow this set-off and consequently on the request of the assessees the question mentioned above has been referred for our opinion. The Point that has been raised in this question came up for consideration before a Bench of the Bombay High Court in ormerods (India) Private Ltd. v. Commissioner of Income-tax [1959] 36 I.T.R. 329. In that case the learned judges of the Bombay High Court fully discussed all the relevant provisions of the Income-tax Act, referred to a dec....