1975 (3) TMI 19

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d with effect from November 1, 1955, by an order of this court in 1957, Consequent upon this merger the name of Buland Sugar Company was changed into Raza Buland Sugar Company. The assessee in the present references is Raza Buland Sugar Company Ltd. but references in fact relate to the assessments of Buland Sugar Company. The two sugar companies had formed a partnership firm known as the Agricultural Company. The Agricultural Company suffered a loss. It was assessed as unregistered firm for the assessment years in question. The Buland Sugar Company Ltd. (hereinafter referred to as "the assessee") claimed to set off its share of loss in the Agricultural Company against its own profits of the relevant year. This claim was disallowed by the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to appeal to the Supreme Court but it did not give any reason in support of the certificate and hence the Supreme Court did not admit the appeals on the basis of the certificate. The assessee then moved special leave petitions which were rejected with the following observation: "These appeals are brought on the strength of a certificate issued by the High Court of Allahabad. The High Court has not given any reasons in support of the certificate issued. Hence, the appeals in question are not maintainable. Realising that difficulty the assessee has moved the special leave petitions above mentioned. We have heard the assessee's counsel at length on the special leave petitions. We do not think that these are fit cases to be heard by this cou....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ve taken a contrary view. We think that the view expressed by the Bombay High Court, the Gujarat High Court, the Andhra Pradesh High Court and the Delhi High Court appears to be a better view. The reason is very simple. Section 24(1) of the Act provides for the set off of loss in computing the aggregate income and reads: "Where any assessee sustains a loss of profits or gains in any year under any of the heads mentioned in section 6, he shall be entitled to have the amount of the loss set off against his income, profits or gains under any other head in that year." This provision clearly comes into play when an assessee wants to set off loss against any other head of income enumerated in section 6. It has no application where loss is s....