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TMI Blog1929 (4) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... business known as Rahman Ice Factory, Delhi. The assessee submitted a return showing profits in (a) but losses in (b) and (c) and claimed to set off the latter against the former. The Income-tax Officer admitted the claim so far as the loss in (b) was concerned and there is now no dispute with regard to it. He, however, refused to allow the set off in respect of the allegad 'loss' in Rahman Ice Factory, (c) in so far as it consisted of depreciation of buildings and machinery, which the assessee claimed to deduct under sub-clause (vi) of section 10(2) of the Act. This order was upheld on appeal by the Assistant Commissioner and on review by the Commissioner Who field that under the Act, this allowance was permissible only if there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the head business . Sub-section (1) of this section is to the effect that the tax shall be payable by an assesses under the head Business in respect of the profits or gains of any business carried on by him. It has been ruled by the Madras High Court that the word 'any' in this clause means each and every business and not merely each business separately Commissioner of Income-tax v. M. Ar. Ar. Arunachalam Chettiar 1 ITC 273, and this ruling has been followed in this Court. It may, therefore, be taken as settled law that if a person carries on two or more distinct businesses, the profits or losses of all of them are to be added together, and the aggregate sum so arrived at represents his profits or gains under the head Bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee during the year, but the Legislature has expressly permitted the assessed to deduct every year a certain percentage of his outlay on buildings and machinery before his assessable income can be ascertained, and in the absence of clear and explicit words to the contrary I can see no reason for holding that this allowance can be claimed only if sufficient profits Have accrued in the particular business in which the machinery and buildings were used. For the respondent reliance is placed principally on proviso (b ) to clause (vi) which runs as follows:- Provided that- ****** (b) where full effect cannot be given to any such allowance in any year owing to their being no profits or gains chargeable for that year, or owing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the succeeding years is not the exclusive remedy allowed to the assessee and cannot be interpreted as debarring him from claiming the benefit of the earlier part of the sub-section. My answer to the question referred to this Court therefore, is that under sub-clause (vi) of section 10 (2) depreciation on buildings and machinery can be set off against gains and profits accrued to the owner of those buildings and machinery from other sources such as rental from house property during the year in question. Having regard to all the circumstances, I would leave the parties to bear their own costs of these proceedings in this Court. The announcement of this judgment has been delayed as after arguments in this case had been heard and judg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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