1959 (4) TMI 35 - HC - Income Tax

Summary

The High Court of Madras overturned the decision in Ahamed Sahib's case regarding carrying forward losses under Section 24(2) of the Indian Income-tax Act. The court ruled that an assessee is entitled to carry forward unadjusted losses for six years without the need for prior ascertainment and determination by the Income-tax Officer. The assessee was granted the right to carry forward losses for assessment years 1948-49 and 1949-50 to set off against profits in 1950-51 and 1951-52. The applicant was awarded costs.