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TMI Blog1951 (5) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... of past years suffered by it in its own other businesses?, have arisen in the following circumstances :- The assessee is a Hindu undivided family carrying on business in the name Banka Mal Niranjan Das, with its head office at Kaithal in the Karnal district. It also owns As. 0-7-9 share in a firm, Banka Mal Lajja Ram Co., at Kaithal, which, for purposes of tax, has been treated as an association of persons. In the previous year for the assessment for 1941-42, the assessee suffered a loss of ₹ 35,471 in its own business. The loss was set off against the income of the assessee from the business of Banka Mal Lajja Ram Co. The unabsorbed loss and depreciation was carried forward to the year of assessment 1942-43. In the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carried forward to the following year and set off against the profits and gains, if any, of the assessee from the same business, profession or vocation for that year; and if it can not be wholly so set off, the amount of loss not so set off shall be carried forward to the following year, and so on; but no loss shall be so carried forward for more than six years, and a loss arising in the previous years for the assessment for the years ending on the 31st day of March, 1940, the 31st day of March, 1941, the 31st day of March, 1942, the 31st day of March, 1943, and the 31st day of March, 1944, respectively, shall be carried forward only for one, two, three, four and five years, respectively. In the present case, by reason section 14(2)(b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other, it is still a regularly recurring revenue receipt and therefore income in every sense of the term. The fact whether such receipt has already been taxed as the income of an association of persons is irrelevant to the determination of the question whether the share received by the assessee is or is not income. The incidence of income-tax on the profits of Banka Mala Lajja Ram Co. merely affects the amount of the receipt which the persons constituting that association receive as their share and not its nature. The receipt still remains income in the hands of the persons receiving it, even though tax has been levied on it before its precise amount is determined. The loss suffered by the assessee in its family business in. the previ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section is the word same , the true effect of which is that the loss of the assessee from profits and gains of business, which has not been absorbed under sub-section (1), can be carried forward to the next year and set off, not against the income of, the assessee from any other source or business, but only against the profits and gains from the same business, profession or vocation. In the present case, therefore, the unabsorbed loss could only be set off against the income of the business in which loss had occurred in the preceding year, and it could not be set off against another business of the assessee. It cannot be contended that the business carried on by Banka Mal Lajja Ram Co., of which the assesses who is a Hindu undivided ..... X X X X Extracts X X X X X X X X Extracts X X X X
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