Judgment

S. K. DAS, J. : These two consolidated appeals raise a common question of law and have been heard together. The Commissioner of Income-tax, Madras, is the appellant in both the appeals. P. M. Muthuraman Chettiar, manager of a Hindu undivided family, is the respondent in Civil Appeal No. 429 of 1960 and S. Abdul Shakoor is the respondent in Civil Appeal No. 430 ) of 1960. We shall refer to the respondent in each of these two appeals as the assessee.

2. The short facts giving rise to the two appeals are these. The assessee in Civil Appeal No. 429 of 1960 is a Hindu undivided family consisting of a father and his minor son. The assessee carried on business as a money lender and a dealer in shares in what was then known as British India. The assessee was also a partner in three non-resident firms carrying on business at Penang, Kuantan and Raub. By reason of the residence of the manager in the year of assessment which was 1964-47, the assessee was treated as resident and ordinarily resident in the taxable territories. In the course of the assessment proceedings, the assessee claimed that it had incurred a loss of Rs. 23,672 in the three foreign businesses in which it was a partn