COMMISSIONER OF INCOME TAX Vs. MURLIDHAR MATHURAWALLA MAHAJAN ASSOCIATION

JUDGEMENT

(1.) .The assessee was carrying on two distinct and separate businesses, one in Bombay and the other at Indore. During the year of account there was profit in the Bombay business, but the business at Indore resulted in a loss amounting to Rs. 1,55,583. The assessee claimed that this loss should be set off against the profits realised in the Bombay business. The view taken by the Income-tax Officer and the Appellate Assistant Commissioner was that the assessees claim was not sustainable in view of the first proviso to Section 24. The Tribunal differed from the view taken by the Income-tax Officer and the Appellate Assistant Commissioner and came to the conclusion that the assessee was entitled to set off the loss suffered by him in the Indore business against the profits of the Bombay business.