1976 (1) TMI 3

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....cerned with the question as to whether the assessee is eligible for adjustment of losses brought forward from the earlier years. The reference relates to the assessment years 1962-63 and 1963-64. The preceding financial years are the previous years. The assessee is a company. The company carries on business in raising coal from mines taken on lease. It also derives income by acting as agent for....

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.... its coal raising activity which, according to the ITO, is a different business from the existing business in the assessment years concerned. The appeals filed by the company were dismissed by the AAC. The Tribunal has allowed the second appeals filed by the company by holding that the company has carried on one and the same business in all these years. It has been held by the Tribunal as follo....

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....nd in the circumstances of the case, the business activities of the assessee, viz., the coal raising from mines taken on lease and acting as agents in the purchase and sale of coal on commission constituted part of one integrated trade or business so as to justify the setoff of losses brought forward from 1958-59 to 1960-61 in the assessment under reference under s. 72 of the I. T. Act, 1961 ?" ....

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.... us in view of the above findings of the Tribunal. In our opinion, the tests laid down by the Supreme Court on "one and the same business" in the cases of Setabganj Sugar Mills Ltd. v. CIT [1961] 41 ITR 272 (SC), CIT v. Prithvi Insurance Co. Ltd. [1967] 63 ITR 632 (SC), Hooghly Trust (P.) Ltd. v. CIT [1969] 73 ITR 685 (SC), Produce Exchange Corporation Ltd. v. CIT [1970] 77 ITR 739 (SC) and Sta....