R. S. Pathak, J. - (1.) This appeal by certificate under Section 66-A (2) of the Indian Income Tax Act, 1922 raises a question involving the interpretation of Section 24 (2) (iii) of that Act.
(2.) The assessee is a company carrying on the business of manufacturing jute goods. The case relates to the assessment year 1960-61, for which the relevant accounting period is the financial year ending March 31, 1960.
(3.) While making the assessment for the assessment year 1959-60, the Income-tax Officer set off the unabsorbed business loss of Rs.1,58,845 for 1949-50 and Rs.5,70,952 for 1950-51 against the business income of that year and directed that Rs.15,50,189 representing the loss remaining unabsorbed should be carried forward. In the assessment proceeding for the assessment year 1960-61, with which we are concerned, the assessee claimed that the unabsorbed loss should be carried forward and set off against the business income of the current year. The Income-tax Officer rejected the claim on the ground that the unabsorbed loss related to 1950-51 and could not be carried forward for more than eight years. The assessee pressed the claim in appeal before the Appellate Assistant Commissioner but without success. A second appeal was dismissed by the Income-tax Appellate Tribunal. At theinstance of the assessee, the Appellate Tribunal referred the following question of law to the High Court at Calcutta: "Whether, on the facts and circumstances of the case, the assessee was entitled in law to set off unabsorbed loss of Rs.15,50,189 of the assessment year 1950-51 against the business income of the assessment year 1960-61 - The High Court answered the question in the negative.;