COMMISSIONER OF INCOME-TAX KERALA vs HELEN RUBBER INDUSTRIES LTD.

The Supreme Court addressed the issue of whether a company incorporated in Travancore could carry forward losses incurred in 1946 under the Travancore Income-tax Act and the Indian Income-tax Act, 1922. The Court held that the Taxation laws (Part B States) (Removal of Difficulties) Order, 1950, did not alter the rights under the Travancore Act, which limited the carry forward of losses to two years. Consequently, the High Court's ruling allowing a six-year carry forward was overturned, affirming that the applicable law was the Travancore Act, and the loss could not be carried forward beyond the stipulated period.