S.M.SIKRI,J.

(1) THIS is an appeal by certificate granted by the High court of Calcutta against its judgment in a reference made to it under s. 66 of the Indian Income Tax Act, 1922 (hereinafter referred to as the Act.) The question referred to it by the Appellate tribunal, at the instance of the assessee, was as follows : `Whether in the facts and circumstances of the case, the unabsorbed depreciation of the past years should be added to the depreciation of the current year and the aggregate of the unabsorbed depreciation and the current years depreciation be deducted from the total income of the previous year relevant for the assessment year 1952-53.` The relevant facts and circumstances are as follows : The Income Tax Officer assessing the respondent, M/s Jaipuria China Clay Mines (P) Ltd. Calcutta, hereinafter referred to as the assessee, for the year1952-53 computed its total income at Rs. 14,041.00 before charging depreciation for that year. From that figure he deducted depreciation for the year amounting to Rs. 5,360.00, thus computing a profit of Rs. 8,681.00. From this figure he deducted an equivalent amount, i.e., Rs. 8,681.00, in respect of losses d