1929 (4) TMI 2

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....s, etc, in Saddar Bazar, Delhi, and, (c) business known as Rahman Ice Factory, Delhi. The assessee submitted a return showing profits in (a) but losses in (b) and (c) and claimed to set off the latter against the former. The Income-tax Officer admitted the claim so far as the loss in (b) was concerned and there is now no dispute with regard to it. He, however, refused to allow the set off in respect of the allegad 'loss' in Rahman Ice Factory, (c) in so far as it consisted of depreciation of buildings and machinery, which the assessee claimed to deduct under sub-clause (vi) of section 10(2) of the Act. This order was upheld on appeal by the Assistant Commissioner and on review by the Commissioner Who field that under the Act, this ....

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....rom rental on property. Sec. 10 provides the mode of computing "profits or gains" under the head "business". Sub-section (1) of this section is to the effect that the tax shall be payable by an assesses under the head "Business" in respect of the profits or gains of any business carried on by him. It has been ruled by the Madras High Court that the word 'any' in this clause means "each and every business" and not merely each business separately Commissioner of Income-tax v. M. Ar. Ar. Arunachalam Chettiar 1 ITC 273, and this ruling has been followed in this Court. It may, therefore, be taken as settled law that if a person carries on two or more distinct businesses, the profits or losses of a....

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....om those mentioned in the other clauses of the sub-section. It is no doubt true that these allowances do not represent actual payments made by the assessee during the year, but the Legislature has expressly permitted the assessed to deduct every year a certain percentage of his outlay on buildings and machinery before his assessable income can be ascertained, and in the absence of clear and explicit words to the contrary I can see no reason for holding that this allowance can be claimed only if sufficient profits Have accrued in the particular business in which the machinery and buildings were used. For the respondent reliance is placed principally on proviso (b ) to clause (vi) which runs as follows:- "Provided that- ****** (b)....