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TMI Blog1985 (11) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... nion of this court : " 1. Whether, on the facts and circumstances of the case and the material on record, the Tribunal was justified in refusing to allocate total accepted profits of Rs. 32,220 in cotton account No. II in the ratio of sales, i.e., 16,449 and Rs. 4,70,209, for both the periods relating to 1967-68 and 1968-69 assessments when there is practically no difference in average sale and purchase prices in both the periods. 2. Whether, on the facts and circumstances of the case and the material on record, the method of computation of profits done by the Tribunal in cotton account No. II is legally justified when another reasonable and scientific method of allocation of accepted profits in the ratio of sales was available. 3. Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of cotton business for the assessment year 1968-69, not to have accepted diwali year for the same business for the assessment year 1967-68. 8. Whether, on the facts and circumstances of the case and the material on record, in the absence of any extension application, interest under section 139 can be legally charged. 9. Whether disallowing, of loss of Rs. 3,425 in joint venture account with Roop Lal Kanakmal in excess of total loss of Rs. 1,724 claimed by the assessee is not unjustified. 10. Whether annuity deposit should be deducted while calculating interest under section 139 treating the assessee as unregistered firm." The Income-tax Appellate Tribunal made a reference to this court for its opinion on questions Nos. 8 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, the Tribunal was justified in upholding the levy of interest under section 139(1)(iii) of the Act. This question was answered by the Division Bench of this court on March 29, 1984, in Roop Narain Contractor v. Addl. CIT [1985] 153 ITR 670. In that case, views of different High Courts were taken into consideration and it was opined that, in the facts and circumstances of the case, the Tribunal was justified in upholding the levy of interest under section 139(1)(iii) of the Act. The Division Bench relied on the earlier Division Bench decision of this court in Daljeet Singh's case and further reliance was placed on a Full Bench decision of the Andhra Pradesh High Court in ITO v. Secunderabad Tin Industries [1978] 113 ITR 1. The Full Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forward and set off only against the income of the firm. (2) Where the assessee is a partner of an unregistered firm which has not been assessed as a registered firm under the provisions of clause (b) of section 183 and his share in the income of the firm is a loss, then, whether the firm has already been assessed or not. (a) such loss shall not be set off under the provisions of section 70, section 71, sub-section (1) of section 73 or section 74A ; (b) nothing contained in sub-section (1) of section 72 or sub-section (2) of section 73 ; or sub-section (1) of section 74 or sub-section (3) of section 74A ; shall entitle the assessee to have such loss carried forward and set off against his own income." A perusal of sub-section (1) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter as under (at p. 634 of Vol. 1) : "Likewise, if an individual is a partner in a registered firm and also in another unregistered firm, and the registered firm makes a loss and the unregistered firm makes a profit, the partner cannot be required to set off his share of the registered firm's loss against his share of the unregistered firm's profits on which the tax has already been paid by the firm ; but he is entitled to set off his share of the registered firm's loss against his other taxable income or to carry forward the loss. Conversely, if the registered firm makes a profit and the unregistered firm makes a loss, the unregistered firm would be entitled to carry forward the loss and the common partner would be assessed on his sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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