1967 (5) TMI 15

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....Act ") : " Whether, on the facts and in the circumstances of the case, the assessee is entitled to deduct the entire loss from milling business of Rs. 57,980 relating to assessment year 1948-49 from the profits of the same business in the material year or only the loss as reduced by the speculation profits of 1948-49 ? " The present case relates to the assessment year 1949-50. The assessee is a Hindu undivided family and carries on milling as also speculation business. The profit and loss position of the preceding three years is as follows : -------------------------------------------------------------------------------------------------------------------------------------------------- Assessment Total profit Profit or loss P....

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....of the milling business which, as said earlier, was Rs. 2,57,831, fixed the net business income of the assessee for the year 1959-60 at Rs. 1,40,628. The assessee also received an income from property this year which the Income-tax Officer added back with the result that the assessment was made on Rs. 1,50,713. The assessee appealed to the Appellate Assistant Commissioner and to the Tribunal successively but without success. Thereafter, as already stated earlier, the present reference to this court was made by the Tribunal at the instance of the assessee. The contention of the assessee before us, as it was before the Tribunal and the Appellate Assistant Commissioner, is that in the year 1948-49 the profit earned in the speculation bus....

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....t of loss not so set off shall be carried forward to the following year, and so on ; but no loss shall be so carried forward for more than six years... " The argument is that the expression " from the same business " means that particular business amongst many in which loss has occurred. It is urged that in the present case the same business would be business from speculation. We are unable to agree. In our opinion, the expression " from the same business, profession or vocation " means the business, profession or vocation which has been carried forward from the preceding year and not a new business, profession or vocation. It would appear that this sub-section also uses the words " other heads of income ". Section 6 of the Act enumer....