THE COMMISSIONER OF INCOME-TAX, WEST BENGAL,II CALCUTTA vs M/S. NAGA HILLS TEA CO. LTD.

The Supreme Court addressed the interpretation of Section 66(1) of the Indian Income-tax Act, 1922, concerning the set-off of unabsorbed reductions in rebates. The Court held that the unabsorbed reduction in rebate from the assessment year 1957-58 could not be set off against the rebate for the assessment year 1959-60, as there was no rebate available for the prior year. The Court affirmed the decision of the Calcutta High Court in favor of the assessee, thereby upholding the Tribunal's ruling.