Brooke Bond & Company Ltd. vs Commissioner Of Income Tax

Whether dividend income from shareholdings in tea companies constitutes business income for the purpose of carrying forward business losses and unabsorbed depreciation under Section 24(2) of the Indian Income Tax Act, 1922 --- Held No, as the investments were not shown to be trading assets incidental to the appellant's tea business. Whether the Commissioner of Income Tax could consider the carry forward of unabsorbed depreciation for assessment year 1956-57 despite a pending appeal for assessment year 1957-58 on the same issue --- Held Yes, the CIT should have considered the claim on its merits for the relevant assessment year.