COMMISSIONER OF INCOME-TAX, U. P. vs JAGANNATH MAHADEO PRASAD — 1971 PTD 545

Citation: 1971 PTD 545

Court: Supreme Court of India

Year: 1970

Decision Date: 1970-12-31

Parties: COMMISSIONER OF INCOME-TAX, U. P. vs JAGANNATH MAHADEO PRASAD

Headnotes

Case cited as 1971 PTD 545

Judgment Text

Court Name: Supreme Court of India Judge(s): V. Ramaswa mi, A. N. Grover, J. C. Shah Title: COMMISSIONER OF INCOME-TAX, U. P. vs JAGANNATH MAHADEO PRASAD Case No.:Civil Appeals Nos. 1761 and 1762 of 1967 Income-tax Reference No. 130 of JUDGMENT Reported As: 1971 PTD 545 Result: Appeals allowed Judgment JUDGMENT GROVER, J.--The common question which arises in these appeals by certificate is whether speculative losses can be set off against profits from any other business activity under section 10 in spite of the first proviso to section 24(1) of the Income-tax Act, 1922. The facts in C. A. No. 1761 of 1967, in which the question in the above form was referred, the language of the question being somewhat different in the other appeal, may be stated. The assessee, who is an individual derived income from three sources, i.e., property, shares in join;, stock companies and commission agency business and shares in partnership firms. The accounting year relevant to the assessment year 1953-54 was the period from October 20, 1951. To October 8, 1952. In the per--sonal business of commission agency, the assessee returned a not profit of Rs. 2,761. In arriving at this figure the not share of loss of Rs. 11,075 from the firm of Kamta Prasad Raghunath Prasad, in which the assessee was a partner, was claimed. The Income-tax Officer did not go into the details but ignored the figure in the absence of information from the Income-tax Officer assessing the aforesaid firm. Before the…

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