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PETITIONER: SETH JAMNADAS DAGA AND OTHERS
Vs.
RESPONDENT: COMMISSIONER OF INCOME-TAX, SOUTH BOMBAY
DATE OF JUDGMENT: 12/12/1960
BENCH: HIDAYATULLAH, M. BENCH: HIDAYATULLAH, M. DAS, S.K. SHAH, J.C.
CITATION: 1961 AIR 1139 1961 SCR (3) 174 CITATOR INFO : R 1961 SC1259 (3)
ACT: Income-tax-Two firms registered and another unregistered- Income from unregistered firm, if ’ can be set off against loss from registered firms-Losses of the registered firm, if can be carried forward in subsequent year-Indian Income-tax Act, 1922 (11 Of 1922), ss. 14(2), 16(1)(a) and 24(1).
HEADNOTE: The appellants were partners of two registered firms and another firm which was unregistered. Their profit and loss for the assessment year 1948-49 were as follows:-From registered firms Rs. 11,902 loss, 1,265 loss, total loss Rs. 13,167. Income from the unregistered firm Rs. 26,110 profit, other income Rs. 262. The income of the unregistered firm was taxed on the firm. In assessing the amount of Rs. 262 the Income-tax Officer first determined the total income of each of the appellants by setting off their share of the profits of the unregistered firm against their share of the loss of the registered firm. The appeal to the Appellate Assistant Commissioner being unsuccessful appeals 175 were taken to the Tribunal which relying on the decisions in Commissione...