M C T M CORPORATION PRIVATE LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE question that have been referred to us are these :

(2.) IF the answer to the above question is in the affirmative whether any part of the loss incurred by the assessee till the end of the enemy occupation in 1945 is available under section 24(2) as a set-off against the assessments of 1950-51, 1951-52, 1952-53, notwithstanding that they had not been determined in any proceedings for the relevant year ?

(3.) IN the first of the assessment years, the above loss was claimed as a deduction on the grounds that the loss became effective only on the 1st of October, 1949, that is, within the year of account relevant to the assessment year 1950-51. Alternatively, it was contended that even if the loss had arisen earlier, a set-off could be allowed under section 24(2) of the Act. This claim to set-off was reiterated in the subsequent assessments. The INcome-tax officer took the view that, even on the assessees own showing, the loss had been incurred on or before 1947. With respect to the set-off, he observed :