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TMI Blog1978 (3) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... f the earlier years cannot be set off and carried forward against the income of assessment years 1964-65 and 1965-66 ? 2. Whether, on the facts and circumstances of the case, can the unabsorbed loss of earlier assessment years be carried forward and set off in the assessment years 1964-65 and 1965-66 under section 72 or section 41(5) ?" The material facts giving rise to this reference briefly are as follows : The applicant-assessee is a private limited company having its registered office at Indore. The application relates to the assessment years 1964-65 and 1965-66, for which the accounting years ended respectively on 30th November, 1963, and 30th November, 1964. The assessee carried on the business of selling Land Rover Jeeps, Rover C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessee under s. 256(1) of the Act before the Tribunal for making a reference, the Tribunal observed that the finding of the Tribunal regarding discontinuance of the business did not give rise to any question of law and hence the application filed by the assessee under s. 256(1) of the Act was rejected. The assessee has, therefore, made the present application. Having heard learned counsel for the parties, we have come to the conclusion that this application deserves to be rejected. The Tribunal has found that the stocks of cars and trucks and spare parts were finally disposed of by the assessee in the accounting period ending on 30th November, 1962. The Tribunal also found that the premises, where the registered office of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of dealing in cars and trucks and it came to an end when the stocks were exhausted. In regard to the commission income, there is no such income earned right from the assessment year 1964-65 from the activity of selling vehicles belonging to others. The amount of commission of Rs. 22,500 disclosed in the accounting period ended on 30th November, 1964, was from brokerage of sub-letting of property belonging to Universal Motors." The Tribunal also found that the business premises were given up by the assessee and all the employees were removed from service. In view of all these facts, the Tribunal found that the assessee had ceased to carry on the business in question and that it was not a case of lull or temporary cessation of business ..... X X X X Extracts X X X X X X X X Extracts X X X X
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