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Issues:
Interpretation of section 24(2) of the Income-tax Act, 1922 regarding set-off of losses from the same business for income tax assessment purposes. Analysis: The case involved a question of law regarding the deduction of losses from a milling business for the assessment year 1949-50. The assessee, a Hindu undivided family, was engaged in both milling and speculation businesses. The Income-tax Officer set off losses from previous years against the profits of the milling business, resulting in a net business income for the year 1949-50. The assessee contended that the profits from the speculation business in 1948-49 should have been set off against the losses of the same business in 1947-48, leading to a different calculation of losses for the milling business in 1948-49. The main contention was whether the expression "from the same business" in section 24(2) referred to a specific type of business or all businesses collectively. The court interpreted that the term "the same business" meant the business carried forward from the preceding year, not a new business. It was clarified that even if an assessee conducts multiple types of businesses, for tax assessment purposes, all businesses are considered under one common head of business. Therefore, the losses and profits from different types of businesses conducted by the assessee are aggregated under the head of business for assessment. The court concluded that the Income-tax Officer was correct in deducting the profits from the speculation business in 1948-49 from the losses of the milling business for the same year. Consequently, the assessee was not entitled to deduct the entire loss from the milling business without considering the profits from the speculation business. The Tribunal and the Appellate Assistant Commissioner's decision affirming the Income-tax Officer's assessment was upheld. The assessee was ordered to pay the costs of the proceedings, assessed at Rs. 200, along with the department's counsel fees set at the same amount.
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