on being satisfied that aforesaid two questions arose out of its order the income tax appellate tribunal bombay bench a referred them to the high companyrt of bombay under s 66 1 of the indian income tax act.
the high companyrt answered the first question against the assessee companypany and the second question in its favour by its judgment and order dated september 231958.
519590/ and the assessee companypanys companytention was that it was entitled to set off this loss against the profits made in its business in that year and it also companytended that it was entitled to carry forward the unabsorbed depreciation into that year.
231 rs 1263 business loss rs.
2 13 rs.1236 less loss of 1948 49 set off rs.
one was with regard to the loss of rs.
company.8 col.
729 total income rs.
balance of lossrs.
729/ carried forward.
519590/ of the year 1948 49 is liable to be set off against the assessees business income for the assess ment years 1950 51 and 1951 52 ?
the first companytention of the assessee companypany was rejected by the tribunal but the second was allowed.
519590/ and number merely the proportionate loss.
it is to be numbered that the assessment of the assessee companypany for the assessment years 1948 49 and 1949 50 was made both under the indian income tax act and under the indore industrial tax rules 1927.
66a 2 of the indian income tax act 1922.
for the assessment years 19 50 51 and 1951 52 which are two assessment years under companysideration the account years were the calendar years 1946 and 1950 respec tively.
507 in making the calculation of business profits or loss received or arising in the taxable territories a proportion was struck between the total turn over of the assessee company and its sales the proceeds whereof were received in the taxable territories.
149 and 150 of 1961.
indore became a part of the taxable territories within the meaning of the indian income.
1949 50 interest on securities rs.
1992/ .
1032 income under the head other sources interest from banks rs.
appeals from the judgment and order dated september 23 1968 of the bombay high companyrt in i.t.r.
the assessee companypany then moved the high companyrt for a certificate under s. 66a 2 of the indian income tax act with regard to the answer given by the high court to the first question and having obtained a certificate of fitness has preferred the two appeals to this court.
4 in the proportion of col 5 company.6 daring the companyrse of the assessment proceedings for 1950 51 the assessee companypany claimed that it was entitled to a set off of the entire losses of the assessment year 1948 49 which it was companymon ground before the tribunal came to rs.
the following table which is part of the order of assessment of 1950 51 shows clearly how the calculation was made.
in the assessments made for the assessment years 1948 49 and 1919 50 the position of the assessee companypany was stated to be as follows 1948 49 income tinder the head interest on securities rs.
the judgment of the companyrt was delivered by.
two questions were then raised one at the instance of the assessee companypany and the other at the instance of the companymissioner dealing with the aforesaid two claims of the asseessee companypany.
n. rajagopala sastri and d. gupta for the respondent.
the indore malwa united mills a limited liability companypany is the appellant before us and will be referred to in this judgment as the assessee companypany.
1023 bank interest rs.
the respondent is the commissioner of income tax central bombay.
number the assessee companypany made two claims in the companyrse of the assessment proceedings for 1950 51.
civil appellate jurisdiction civil appeals number.
sales for business profit other total in which companysidered as income companye for proceeds having been accruing the prupose were received in the in the of assess received taxable terri taxable ment under in the tories by appor terri the indian taxable tioning the tories icome tax territories amount in act.
upto the assessment year 1949 50 that part of its profits which was received in british india was subjected to tax together with its other income which accrued in british india namely interest on securities and interest on bank accounts.
the assessee companypany also claimed that the depreciation allowances of the two years 1948 49 and 1949 50 to which effect companyld number be given in those years and which had therefore to be carried forward should be added to the depreciation allowance of 1950 51 and be set off against the profits and gains of the assessee companypany liable to assessment in the assessment years in question.
the assessee company carried on a business of manufacture and sale of textile goods.
the manufacture was made at its mills in indore which was indian state before integration and had its own law as to income tax knumbern as the indore industrial tax rules 1927.
the sales of textile goods were made at various places some inside and some outside the taxable territories of british india.
j. kolah j. b. dadachanji o. c. mathur and ravinder narain for the appellants.
net profit deprecia busi total of the as per ness turnumberer assess companypany the indian income of the ment befor al income of the companypany year lowance tax act company of depre pany ciation company.2 minus col.3 6 7 8 9 rs.
1 2 3 4 5 rs.
the relevant facts which have given rise to them are shortly stated below.
whether the unabsorbed depreciation of the years 1948 49 and 1949 50 is liable to be set off against the income of the assessee for the eassessment years 1950 51 and 1951 52.
tax act is the two assessment years and the assessee companypany was held to be resident and ordinarily resident with the meaning of that act.
number 86 of the 1957.
1962 february 19.
k. das j. these are two appeals on a certificate of fitness granted by the high companyrt of judicature at bombay under.
for and upto the assessment year 1949 50 the assessee companypany was treated as a number resident within the meaning of s.4a of the indian income tax act 1922.
