Disputes having arisen, the lessees suspended payment from June 1946.
The Income tax Officer held that the loss of the year 1946 companyld number be carried forward to that year, since it had lapsed after two years under s. 32 of the Travancore Act, and s. 24 2 was number applicable, in view of paragraph 3 of the Order, mentioned above.
Appeal from the judgment and order dated October 31, 1958 of the Kerala High Court in I. T. No.
The assessee Company declared losses in the account years, 1946, 1947 and 1948.
Loss 1946 1 1 1946 to 1123 M. E. 17 8 1947 Rs.
23,000/ odd in full satisfaction.
Litigation followed but the dispute was settled by the assessee Company receiving Rs.
Thus for the account year, 1 1 1946 to 31 12 1946 of the firm the assessment year was 1123 M. E. 17 8 1947 to 16 8 1948 .
The year of account of the assessee Company is the Calendar year.
4031 10 0 31 12 1946 to 16 8 1948 1947 1 1 1947 to 1124 M. E. 17 8 1948 Rs.
The Judgment of the Court was delivered by HIDAYATULLAH, J. The Commissioner of Income Tax, Kerala and Coimbatore, has filed this appeal against the judgment and order of the High Court of Kerala dated October 31, 1958, by which the High Court answered in favour of the respondent Helen Rubber Industries, Ltd., Kottayam the following question Whether under the provisions of the Indian Income tax Act the petitioner is entitled to carry forward the loss for a period of six years numberwithstanding the fact that during the period when the loss had occurred, the law applicable was the Travancore Income tax Act ?
Two questions were referred to the High Court in companypliance with an earlier order of the High Court under s. 66 2 but with the other question, we are number companycerned in this appeal.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
466 of 1960.
13241 9 3 The dispute in this case is about the right of the assessee Company to carry forward the loss of the year 1946 under the provisions of the Travancore Act read with s. 24 2 of the Indian Income tax Act and the Taxation Laws Part B States Removal of Difficulties Order, 1950 to the assessment year, 1951 52, in the assessment of the Company for its year of account, the Calendar Year, 1950.
January 16.
6605 1 6 31 12 1947 to 16 8 1949 1948 1 1 1948 to 1125 M. E. 17 8 1949 Rs.
In the year 1941, the assessee Company granted a lease of the factory to certain persons for a period of 15 years.
These losses, together with the dates of the account years and the assessment years are tabulated below Year of account Year of assessment.
The respondent did number appear.
The High Court has granted a certificate under s. 66A 2 of the Income tax Act.
From that year, the rent and royalty received from the lessees were the only source of income.
The Tribunal was moved for a case, but declined to state one but the High Court called for a statement of the case under s. 66 2 and the above mentioned question was decided in favour of the assessee Company.
Messrs. Helen Rubber Industries, Ltd. is a Company, which was incorporated in the former State of Travancore with its registered office at Kottayam.
With the details of these disputes and their settlement, we are number companycerned.
N. Rajagopal Sastri and P. D. Menon, for appellant.
The order of the Income tax Officer was companyfirmed in appeal by the Appellate Assistant Commissioner and the Appellate Tribunal.
The assessment year under the Travancore Act ended on the last day of Karkadakom, which companyresponds to August 16, 1947.
2604 13 9 31 12 1948 to 16 8 1950 Total Rs.
2 of 1956 K .
Before the extension of the Indian Income tax Act, there was in force in Travancore State, the Travancore Income tax Act, 1121 M. E. Act XXIII of 1121 M. E. , which came into force on the first day of Chingom 1122 E. August 17, 1946 .
The assessee Company was number represented at the hearing before this Court.
