V.K. Singhal, J.— The Income Tax Appellate Tribunal has referred the following question of law arising out of its order under Section 256(1) of the Income Tax Act, 1961, in respect of the assessment year 1989-90 :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding the amounts of brought forward losses/allowances were required to be adjusted to the extent to which such adjustments would be necessary by way of set-off of such losses/allowances against current year's net profit, computed in accordance with the regular method of determination of income of the assessee for this year in accordance with the ordinary provisions of the Income Tax Act (from Sections 28 to 43), for the purpose of carrying forward such losses/allowances to the next year, without paying any attention to the fact that actually the asses-see was charged to tax in this year in accordance with the provisions of Section 115J only ?"

2. The facts of the case, are, that the assesses-company was charged to Income Tax on the basis of the computation made under Section 115J. It was claimed before the taxation authorities that, as it had been assessed to a total income as