RELIANCE JUTE & INDUSTRIES LTD. vs C.I.T., WEST BENGAL, CALCUTTA

The Supreme Court held that under Section 24(2)(iii) of the Indian Income Tax Act, 1922, as amended in 1957, unabsorbed business losses can only be carried forward for a maximum of eight years. The Court dismissed the assessee's claim that they had a vested right to carry forward losses indefinitely based on the pre-amendment law. The ruling established that the law applicable is that in force during the relevant assessment year, thus affirming the rejection of the assessee's plea to set off losses from 1950-51 against income from 1960-61.