LexANGLO-FRENCH TEXTILE CO., LTD. versus COMMISSIONER OF INCOME-TAX, MADRAS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
448
SUPREME COURT REPORTS
[1953]
19°2
February 18, 1950, but, in view of the absence of any
b
d
distinct provision in section 21 that the power of
Straw oar
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d
d'fi
· I
Ma ufacturing amen ment an mo 1 catwn conferred on the State
~o., Ltd. · Gtvernment may be so exercised as to have retrospec-
v.
tive operation the order of April 26, 1950, viewed
Gutta .~fill
merely as an order of ainendment or modification,
Workers' Union. cannot" by virtue of section 21, h:i.ve that effect.
If,
-
therefore, the amending order operates prospectively,
Das J,
d
h
1952
Dec. 22.
i.e., only as from the ate oft e order, it cannot valid-
ate the award whic.h had been made after the expiry
of the time specified in the original order and before
the date of the amending order, during which period
the adjudicator was functus officio and had no jurisdic-
tion to act at all.
\Ve do not think the respondents
can derive any support from section 21 of the U. P.
General Clauses Act.
0
The result, therefore, is that this appeal must be
allowed and the award must be declared to be null
and void and we order accordingly. In the circum-
stances of this case we make no order as to costs.
Appeal allowed.
Agent for the appellant : Ganpat Rai.
Agent for the respondent: S. D. Sekhari.
Agent for the intervener: 0. P. Lal.
ANGLO-FRENCH TEXTIT~E CO., LTD.
v.
COMMISSIONER OF INCOME-TAX, MADRAS.
[MEHR CHAND MAHAJAN, DAS, VIVIAN BOSE and
BHAGWATI JJ.]
India>! Income·tax Act (XI of 19e2), ss. 24 ( 2), 84-Return
shoiving loss-lVhether loss can be recorded and carried forward-
Proceedings fo1· re-assessment-Whether whole a.ssess·ment can be re-
opened .
. .\n assessee submitted a return showing the income as l<nil"
~nd this return was accepted by the Income-tax Officer. In the
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S.C.R.
SUPREME COURT REPORTS
449
next year the Income-tax Officer sent a notice to the assessee
1952
under s. 34 (1) (bl calling for a fresh return. The assessee sub-
mitted ,a return .showing the income as "nil" and a loss of
Anglo-J?i·ench
Rs. 3,92,357 and claimed that the Joss should be recorded il,lld Textile Co., Ltd.
carried forward under s. 24 (2) of the Income-tax Act.
The loss
v.
was arrived at by striking a balance in the profit and loss account Commissioner of
of just one business:
Income-tax,
Held, that the assessee was not entitled to have the loss
Madras.
determined and carried forward for two reasons, first, because
when there is no income under any head at all there is nothing
against which the loss can be set off in that year under s. 24 (1)
and unless that can be done sub-s. (2) of s. 24 does not come into
play ; secondly, a set-off uncler s. 24 (2) can only be claimed when
the loss arises under one head and the profit against which it is
sought to be set off under a different head.
Qnaere : Whether when proceedings are taken under s. 34 for
the assessment of income which has escaped assessment, the
assessee is entitled to re-open the whole proceedings.
CrvIL APPELLATE JURISDICTION:
Civil Appeal
No. 13 of 1952. Appeal from the Judgment and
Order dated 18th January, 1950, of the High Court
of Judicature at Madras (Satyanarayana Rao and
Viswanatha Sastri JJ.) in Case Referred No. 28 of
1947.
0. T. G. Nambiar (S. N. Mukherjee, with him) for
the appellant.
'
·
M. 0. Setalvad, Attorney-General for India, and
0. K. Daphtary, Solicitor-General for India ( G. N. Joshi
and P.A. Mehta, with them) for the respondent.
,,.
1952. December 22. The Judgment of the Court
._
was delivered by
..
BosE J.-The following question was referred to
the High
Court of Madras by the Income-tax
Appellate 'rribunal under section 66 (1) of the Indian
Income-tax Act, 1922:
" Whether on the facts and in the circumstances
-0f the case when an assessment has been made under
section 23 (1) of the Indian Income-tax Act, de-
termining the ass.essee company's income as' nil'
and when proceedings under section 34 were sub-
sequently started to assess the ·income which the
450
SUPREME COURT REPORTS
[1953]
l
1952
Income-tax Officer believed to have escaped assess-
ment the assessee company is entitled to claim that
Anglo-French
h 1
f
fit
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('
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Textile Co., Ltd. t e oss o pro . s an &a1.ns me u ~ng eprecia 10n
· v.
alfowance) sustamed by 1t m the prev10us year should
Commissioner of be determined in the course of such proceedings."
Income-tax,
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