Andhra Pradesh Court March 1980 Judgments

Hyderabad Deccan Cigarette Factory Vs. Commissioner of Income-tax, And ...

Court: Andhra Pradesh

Reported in: [1981]127ITR460(AP)

Chennakesav Reddi, J. 1. The assessee in this case is an association of persons consisting of two members, Abida Khatoon and Salima Khatoon. The relevant assessment year is 1969-70. The assessee's total income was computed at Rs. 75,880 for the assessment year 1969-70. In respect of the earlier assessment years, the ITO computed the loss at Rs. 3,25,075. At the end of assessment year 1968-69, the total loss carried forward was Rs. 3,25,075. The assessee claimed that the profit of Rs. 75,880 should be set off against the loss carried forward. The ITO by his order dated February 28, 1972, rejected the claim. He observed that the High Court in Reference Nos. 38/69 and 29/70 dated 12-12-1971 (since reported as Smt. Abida Khatoon v. CIT : [1973]87ITR627(AP) ), in which both the members of the association sought for the allowance of their share of loss in the computation of their individual income from other sources held that both the members were entitled to set off their share of loss in t...