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TMI Blog1979 (10) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... a question involving the interpretation of s. 24(2)(iii) of that Act. The assessee is a company carrying on the business of manufacturing jute goods. The case relates to the assessment year 1960-61, for which the relevant accounting period is the financial year ending March 31, 1960. While making the assessment for the assessment year 1959-60, the ITO set-off the unabsorbed business loss of Rs. 1,58,845 for 1949-50 and Rs. 5,70,952 for 1950-51, against the business income of that year and directed that Rs. 15,50,189 representing the loss remaining unabsorbed should be carried forward. In the assessment proceeding for the assessment year 1960-61, with which we are concerned, the assessee claimed that the unabsorbed loss should be carrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mes. Prior to its amendment by the Finance Act, 1955, it permitted a business loss to be carried forward for not more than six years, except in the case of losses pertaining to certain assessment years ending with the assessment year 1943-44 where the period for carrying forward was shorter. Section 16 of the Finance Act, 1955, amended s. 24(2), and as a result of the amendment s. 24(2)(iii) provided that a business loss which was not wholly set off could be carried forward from year to year. Thereafter, Finance (No. 2) Act of 1957 amended s. 24(2)(iii) with effect from April 1, 1957, and in consequence an unabsorbed loss could not now be carried forward for more than eight years. The assessee claims a vested right under s. 24(2)(iii), as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0-51 cannot be carried forward for more than eight years, and consequently, cannot be set off against the business income of the assessment year 1960-61. It is pointed out that the AAC mentioned in his order for the assessment year 1959-60 that the unabsorbed loss of Rs. 15,50,189 should be carried forward. That direction has meaning only if the law in force in the assessment year 1960-61 permits the unabsorbed loss to be carried forward into the assessment of that year. The direction by the AAC assumes that the law permits the unabsorbed loss to be carried forward into future years, but as we have seen that is not the law and, therefore, the assessee can derive no advantage from that direction. The assessee relies on the judgment of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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