SMT. SAROJ AGGARWAL vs COMMISSIONER OF INCOME TAX, U.P.

The Supreme Court ruled that under Sections 72, 73, 74, and 78 of the Income Tax Act, a widow can succeed to her deceased husband's partnership share and set off his unabsorbed speculation losses against her profits. The Court clarified that succession in partnership can occur through inheritance, allowing the widow to claim the set-off despite the earlier ruling by the Income Tax Officer and Appellate Assistant Commissioner. The Tribunal's decision to allow the set-off was upheld, affirming the widow's rights as a partner post her husband's death.