COMMISSIONER OF INCOME TAX, U.P. vs SHAH SADIQ AND SONS.

The Supreme Court held that the right to carry forward losses under Section 24(2) of the Income Tax Act, 1922 is a vested right that continues to exist even after the enactment of the Income Tax Act, 1961. The Court ruled that the losses from the assessment years 1960-61 and 1961-62 could be set off against profits in the assessment year 1962-63, as the right accrued before the 1961 Act came into force. The appeal by the Revenue was dismissed, affirming the Tribunal's decision that the assessee was entitled to the set-off of losses.