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TMI Blog1962 (1) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax Tribunal, Madras Bench, under section 66(1) of the Indian Income-tax Act, 1922. The question referred is: Whether the assessee is entitled to carry forward his share of the aforesaid loss of ₹ 90,828 in the erstwhile registered firm against the profits from his sole business for the assessment year 1957-58 ? The assessee, Dwarakadas, was one of the two partners of a registe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a partner being set off against his subsequent profits as a proprietor. This is the contention that has found favour with the Appellate Tribunal. No other contention is urged before us. There is no doubt that even a registered partnership is a taxable entity. The Finance Act of 1956 made such firms liable to income-tax though only at special rates provided in that Act. The provision, howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total income, against its income of the same year under the same head or any other head. Any loss which cannot be so set off should be apportioned among the partners and each partner may set off his share of the loss against his income of the same year under the same head or any other head. If the loss is not absorbed by such set-off, he may further carry forward and set off his share of the loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in Sitaram Motiram Jain v. Commissioner of Income-tax [1961] 43 ITR 4. That court said: Where an individual incurs loss in a business carried on by him as sole proprietor and a registered firm of which he is a partner takes over his business as a running business together with all its assets and liabilities, he has a right to have the loss carried forward and set off, under section 24(2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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