RAJASTHAN RAJYA SAHAKARI SPINNING AND GINNING MILLS FEDERATION LIMITED Vs. INCOME TAX APPELLATE TRIBUNAL

JUDGEMENT

(1.) THIS appeal is directed against the order and judgment of the Income-tax Appellate Tribunal dated January 31, 2001. The issue for our consideration in this appeal is whether unabsorbed loss can be carried forward and allowed in the case of this assessee when the loss was suffered by four co-operative societies in the preceding year ?

(2.) THERE were four co-operative societies duly registered with the Registrar of Co-operative Societies for Rajasthan, Jaipur. The co-operative societies are : (i) Rajasthan Co-operative Spinning Mills Ltd., Gulabpura ; (ii) Gangapur Cooperative Spinning Mills Ltd., Gulabpura ; (iii) Ganganagar Co-operative Spinning Mills Ltd., Hanumangarh ; and (iv) Gulabpura Cotton Ginning and Pressing Sahkari Samiti Ltd., Gulabpura. The Government of Rajasthan had major shareholding in the aforesaid co-operative societies. The Registrar, Cooperative Societies, Jaipur, made an order under Section 17 of the Rajasthan Co-operative Societies Act, 1965, read with Rule 13 of the Rajasthan Co-operative Societies Rules, 1966, for merger of the aforesaid four co-operative socie- ties with all their assets and liabilities into Rajasthan Rajya Sahkari Spinning and Ginning Mills Federation Ltd., Jaipur.

(3.) HEARD learned counsel for the parties.