9911796707
TMI Blog1975 (7) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... forward are given below Asst. yr. Business loss Unabsorbed development rebate Unabsorbed Depreciation 1960-61 - 14,822 - 1961-62 27,705 - 8,582 1965-66 - - 8,169 1966-67 21,593 - 6,658 1967-68 11,019 - 5,609 1968-69 3,494 - 2,838 . 63,811 14,822 31,856 Total : 1,10,489 . . The ITO did not accept this claim except to the extent of Rs. 2,838 pertaining to the unabsorbed depreciation of asst. yr. 1968-69. On appeal, the AAC found that the assessee was having income from several sources like industrial estate, lorries, boats, saw-mill etc. He held that all these sources excepting saw mill formed only one integrated business and therefore the assessee's claim for carry forward of business loss in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see had incurred some losses in the earlier years. It is this loss which was found by the AAC as arising from a separate business. Regarding the boats the assessee company had purchased some boats and had also taken some on lease and were plying them in the inland waters. One of the boats sunk in the year relevant to the asst. yr. 1967-68 and the balance of the boats were sold on 1st July, 1968 but the boat business was discontinued on 30th June, 1966 itself. The assessee company has their head quarters at Cannanore but the businesses have their own separate places of activity. The lorry business is regulated from a premises in the Fort road in Cannanore. The boats were from the sea shore. The industrial estate business is in any area just ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is only one ledger maintained. The salary payments and wages payments in respect of the saw mill are all only from the general cash book maintained at the head office. He admitted that separate bank account is maintained for the saw mills in the name of Bharat saw mill but that was because the name of the saw mill was such and bills for sawing charges etc. are being made out in this name but this bank account also would contain receipts from other sources of income like lorries, boats etc. so that there is no segregation in respect of the receipts or expenses of saw mills in this bank account. He submitted that the evidence would show that there was only one business. 6. The Departmental Representative, on the other hand, pointed out th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 739 (SC). There the Supreme Court said that they were unable to agree with the view of the Calcutta High Court expressed earlier that the decisive test for determining whether the two lines of business constitute the same business is the nature of the two business. It is, therefore, now settled that the nature of the business is not a metter to be looked into in determining this point. We can on this point dispose of many of the unusual cases which were decided primarily on the nature of the business. Cases like IRC vs. Turnbull 12 Tax Cases 749 Spiers and Sons Ltd. vs. Ogden 17 Tax Cases 117 and H & C. Kinemas Ltd. vs. Cook 18 Tax Cases. 116. 8. We have seen the balance-sheets and the accounts of the assessment years. Upto the asst. yr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rly the receipts from the saw mill. As far as the receipts are concerned there seems to be no difference between one line of business and the other. It is true that the saw mill has a separate bank account but we have seen that in that account certain other type of receipts are also included and the withdrawals from that account are not for the saw mill business alone. In effect although the bank account is ostensibly for the saw mill, it serves the purpose of the entire business. The expenses are also from the common fund. There is only one cash book from which all the expenses got out. We do not have must of facts regarding the persons employed as supervisory staff to manage the business. We have been told that on the termination of the l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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