1961 (8) TMI 69

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.... Tambe, J. 1. This is a reference made by the Income Tax Appellate Tribunal (hereinafter referred to as the Tribunal) under section66 (1) of the Indian Income Tax Act (here in after referred to as the Act). The assessee is a limited liability company incorporated in the then State of Indore. It has a textile mill at Indore where the company carried on its business in the relevant years of manufac....

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....lowing facts referred to in the statement give rise to this question of law. The income earned by the assessee in British India in the assessment years 1940-41 and 1941-42 being more than the income earned by it outside British India, the assessee was treated as a resident for purposes of assessment of Income Tax on it. The result was the assessee's total world income, that is, income earned i....

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....e that the assessee having been treated as a non-resident, the total income of the assessee would include only the income earned by it in British India and not the income earned by it outside British India. It was the assessee's contention that the unabsorbed depreciation allowance amounting to ₹ 5 lakhs and odd was adjustable only against its total income and not its world income. In ot....

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....re, in the assessment of the assessee, or if the assessee is a registered firm, in the assessment of its partners, full effect cannot be given to any such allowance in any year not being a year which ended prior to the 1st day of April, 1939, owing to there being no profits or gains chargeable for that year, or owing to the profits or gains chargeable being less than the allowance, then, subject t....