Judgment

SHAH, J. : The respondent, a public limited company, carried on in the relevant years of account business of insurance - life and general. In each of the calendar years 1944 to 1948 relating to the assessment years 1945-46 to 1950-51, the Company suffered doss in the life insurance section and made profit in the general insurance section. Till the assessment year 1950-51 the loss suffered in the life insurance section was allowed by the Revenue authorities to be carried forward and set off under S 24 (2) of the Indian Income-tax Act, 1922, against profits from the general insurance section in the subsequent year. In proceedings for assessment for the assessment year 1951-52 the Income tax Officer held that the life insurance business and the general insurance business carried on by the Company were "distinct and separate" and the loss carried forward from the previous year in respect of life insurance business could not be set off under S. 24 (2) against the profit of the general insurance business. The Appellate Assistant Commissioner and the Tribunal confirmed the view of the Income-tax Officer. The Tribunal referred the following question to the High Court of Madras unde