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PETITIONER: COMMISSIONER OF INCOME-TAX,AHMEDABAD
Vs.
RESPONDENT: KARAMCHAND PREMCHAND LTD.,AHMEDABAD.
DATE OF JUDGMENT: 28/04/1960
BENCH: DAS, S.K. BENCH: DAS, S.K. KAPUR, J.L. HIDAYATULLAH, M.
CITATION: 1960 AIR 1175 1960 SCR (3) 727 CITATOR INFO : R 1962 SC1272 (9) R 1970 SC1173 (26) R 1975 SC1282 (13)
ACT: Income-tax-Set-off-Business loss in Indian State-Profits in British India-Applicability of the Act to business in Indian State Business profits Tax Act, 1947 (21 Of 1947), SS. 2(3), 4, 5.
HEADNOTE: The assesses held the managing agency of a limited company in what was then called " British India and had also a pharma 728 ceutical business in the Baroda State which was at the relevant time an Indian State. The business in British India showed profits assessable under the provisions of the Business Profits Tax Act, 1947, but the business carried on in Baroda resulted in a loss, in the relevant chargeable accounting periods between 1946 and 1949. Before the Income-tax authorities the assessee claimed that the loss suffered by it in its business in Baroda should be deducted in computing its business income liable to business profits tax, but this claim was rejected on the ground that though under s. 5 Of the Act, if it stood by itself without any of the provisos, the Act would be applicable to the Baroda busin...