CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
In C. A. 260/58 the assessee is a private limited companypany with its registered office in the former Cochin State.
The assessment was made under the Travancore Act and relates to the previous year ending June 30, 1949, the assessment year being 1950 51.
It may be stated that the relevant sections of the Travancore Act which govern the two appeals are identically worded with those of the Indian Incometax Act of 1922 to be called the Indian Act .
B. Pai and Sardar Bahadur, for the respondent in C. A. No.
N. Rajagopala Sastri, R. H. Dhebar and D. Gupta, for the appellant.
259 of 1959.
In C. A. No.
259/58 the assessee is a public limited companypany incorporated in the State of Cochin with branches in that State as well as in what was British India and in Travancore State.
It filed its incometax return showing an income of Rs.
V. Viswanatha Sastri and Naunit Lal, for the respondents in C. A. No.
260/ 58 a further question arose whether in the case of that assessee the year ending June 30, 1949, was the previous year for the assessment year 1950 51 with the result that it should be assessed under the Indian Income tax Act of 1922.
But this question was number answered by the High Court which companyfined itself to answering the first question which was companymon to both the appeals.
The Appellate Tribunal also did number accept the submissions of the assessee and upheld the order of assessment.
6 of 1953 and 21 of 1954.
260 of 1958.
Appeals by special leave from the judgment and orders dated August 5, 1955, of the former Travancore Cochin High Court in Income tax Reference Appeals Nos.
It was carrying on business at its head office in Cochin State and it also carried on business in Travancore State.
The assessees appeal to the Income tax Commissioner was unsuccessful but the Appellate Tribunal held that the banking business of the assessee being one and indivisible for the purpose of determining the amount assessable to income tax it was entitled to deduct the losses incurred outside Travancore State from the profits accruing and arising in that State.
The main argument has been companyfined to the question of applicability of s. 32 1 and the first proviso to that section of the Travancore Income tax Act hereinafter called the Travancore Act .
90,947 representing only the profit it made in Travancore State and under s. 32 1 proviso 1 of the Travancore Act he refused a deduction of Rs.
The Income tax Officer determined its assessable income to be Rs.
79,275 shown as loss from branches situate outside the State of Travancore, in British India and other Indian States.
The Judgment of the Court was delivered by KAPUR, J. These two appeals by special leave raise a companymon question of law, and that is, whether business losses incurred in the erstwhile State of Cochin companyld, under the Income tax Act of Travancore, be set off against the business profits made in the erstwhile State of Travancore.
11,872 for the assessment year 1948 49, its accounting year being the previous calendar year.
The appellant before us in both the appeals is the Commissioner of Income tax and the respondents are the two assessees, in one case a Bank and the other a private limited companypany.
February 23.
In Appeal No.
This was number allowed by the Income tax Officer and on appeal this order was companyfirmed by the Appellate Assistant Commissioner.
The Commissioner has companye up in appeal pursuant to special leave against both these judgments.
The word business,, in s. 10 of the Indian Income tax Act, 1922, is number companyfined to business in British India, in view of the definition of total income and total world income and chargeability of total income under s. 3, Or the provisions Of s. 4 where in the case of a resident total income includes income, profits and gains accruing within or without British India.
259 and 260 of 1958.
