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PETITIONER: THE UNITED COMMERCIAL BANK LTD.,CALCUTTA
Vs.
RESPONDENT: THE COMMISSIONER OF INCOME-TAX,WEST BENGAL
DATE OF JUDGMENT: 23/05/1957
BENCH: KAPUR, J.L. BENCH: KAPUR, J.L. BHAGWATI, NATWARLAL H. AIYYAR, T.L. VENKATARAMA
CITATION: 1957 AIR 918 1958 SCR 79
ACT: Income Tax-Business loss of Previous Year-Set-off against income of the Assessment Year-Income from "interest on secu- rities"-Banking business-Securities, part of trading assets- Indian Income-tax Act, 1922 (XI Of 1922), SS.6,8,10, 24(2).
HEADNOTE: For the assessment year (1945-46) the assessable income of the appellant bank was computed by the Income-tax Officer by splitting up its income into two heads " interest on securities " and " business income ", and deducting the business loss from interest on securities. In the previous year the assessment showed a loss which was computed by setting off the " business loss against " interest on securities The appellant claimed that in the computation of its profits for the assessment year in question it was entitled to set off the carried over loss of the previous year under s. 24(2) Of the Indian Income-tax Act, 1922. The Income-tax Officer rejected the claim on the ground that the loss was under the head " business " and so could not be set off against income from securities under S. 24(2) of the Act. Both the Income-tax Appellate T...