COMMISSIONER OF INCOME-TAX, UTTAR PRADESH vs MANMOHANDAS

The Supreme Court ruled that under Section 24(2) of the Income-tax Act, 1922, an assessee has the right to carry forward a loss from one year to the next and set it off against subsequent profits. The Court held that the Income-tax Officer's determination that the loss could not be set off was not binding, as it is the responsibility of the Officer assessing the subsequent year to make that determination. The Court concluded that the remuneration received by the respondent as Treasurer was not classified as 'salaries' under Section 7, affirming the Appellate Tribunal's decision that the loss could be set off against income in the following year.