COMMISSIONER OF INCOME-TAX, ANDHRA PRADESH vs THE COCANADA BANK LTD. KAKINADA

The Supreme Court held that under Section 24(2) of the Indian Income-tax Act, 1922, a business loss can be carried forward and set off against income from different heads in subsequent years, provided the income is derived from the same business. The Court clarified that the classification of income under different heads in Section 6 does not prevent losses from being set off against income from trading assets, as long as the income is part of the business. The Court upheld the High Court's decision in favor of the assessee, allowing the set-off of losses against interest income from securities classified as trading assets.