1991 (8) TMI 79

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....t, 1961, at the instance of the Revenue. The question raised for an answer is follows : "Whether the assessee is a registered-firm and any loss which cannot be set off against any other income of the firm shall be apportioned between the partners of the firm and they alone shall be entitled to have the amount of the loss set off and carried forward for set off under sections 70, 71, 72, 73, 74 ....

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....n (3) of section 74 or sub-section (3) of section 74A shall entitle any assessee, being a registered firm, to have its loss carried forward and set off under the provisions of the aforesaid sections." The assessee was being assessed for the assessment year 1977-78. In the return originally filed, its income was shown to be Rs. 19,200 but, subsequently, on the basis of a notification of the Gove....

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....(1) is clear that a loss which cannot be set off shall be apportioned between the partners. They can take the benefit of sections 70, 71, 72, 73, 74 and 74A and carry forward the loss. They themselves exclude a firm from carrying forward the loss to the subsequent years. It is true that the Madras High Court, in the decision relied upon by the Tribunal as well as in another decision reported in CI....