GOVINDRAM BROS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) -

(2.) THIS is a reference under Section 66(1) of the Income-tax Act, and the question which we are asked, in our advisory capacity, to express an opinion upon, is whether the loss which was incurred by the assessee company and which was attributable to speculation in silver can be set off, in the following year, against the income, profits and gains in speculation in cotton, having regard to the provisions of sub-section 24(2) of the Income-tax Act. That sub-section provides that such a set off in a subsequent year can only be made against income, profits and gains from the same business.

(3.) THE matter was referred back to the Tribunal to record its finding of fact more clearly, and implicit in that direction is the taking of further evidence, if there is no other way of determining facts in order that the Tribunal may make its finding clear. For the Tribunal to say that because a fact was not before it when they disposed of the assessees appeal, We are unable to include it in the case at this stage of the proceedings, is a most surprising statement and is one which indicates that the Tribunal does not appreciate the duties cast upon it when this Court refers a matter back under Section 66(4). THE reference back to the Tribunal was to record its finding more clearly and after a lapse of one year and ten months the matter now comes back with nothing new except the affidavit of Mr. Pralhadrai Brijlal, which is annexed to the supplemental case. THE delay is not due to any fault of the Tribunal, but it is very oppressive on the assessee, who under the proviso to Section 30 of the Act has had to pay the full amount of the claim.