(1) THIS is a reference under S. 257 of the Income Tax Act, 1961 (Act) made by the Income Tax Appellate tribunal, Madras B bench in R.A. No. 187/MDS/75-76 arising out of ITA No. 1480/Mds/l/72-73 stating a case directly before this court and referring the following question of law for the opinion of this court:

"WHETHER, on the facts and in the circumstances of the case, the assessee is entitled to carry forward to subsequent years not only his share but also the share of loss of his wife from the firm of Messrs Dhanalakshmi Pictures, Vellore?"

(2) THE reference was made to this court directly on the view that having regard to the difference of judicial opinion in the High courts recourse should be had to S. 257 of the Act. The assessee, whose assessable status was that of an "individual", was a member of a firm of partners carrying on business in the name and style Messrs Dhanalakshmi Pictures, Vellore, in which he had a half share in the profits and losses, his wife, the other partner, having the other half share. For the assessment year 1968-69, the asscssec filed a return declaring a loss of Rs. 30,945.00 which was arrived at by including the assesseeS own sh