HOOGLY TRUST (PRIVATE) LTD. vs COMMISSIONER OF INCOME-TAX, WEST BENGAL ANDANDAMAN AND NIC

The Supreme Court held that under Section 24(2) of the Income-tax Act, 1922, losses from a cloth business could be set off against profits from other businesses if they constituted the same business. The Court ruled that the High Court could not examine the correctness of the Tribunal's findings on facts without a proper question being referred. The Court affirmed the Tribunal's decision that the cloth business was not a separate entity and allowed the carry forward of losses, thereby ruling in favor of the assessee.