( 1 ) THE Income-tax Appellate Tribunal, Delhi Bench a has referred the following question of law for the opinion of this Court at the instance of the Commissioner of Income-tax, Delhi-IV, New Delhi : -

"whether on the facts and in the circumstances of the case the Tribunal was right in holding that benefit of carry forward unabsorbed depreciation was available to the Registered firm for adjustment against the income of the succeeding year ?"

THE assessee is a registered firm having two partners. For the A. Y. 1970-71, it was assessed on a total income of Rs. 80,1561-: This comprised entirely of business income. For the immediately preceding assessment year, its total income had been assessed at a net loss of Rs. 80,1001-, which was duly allocated in equal shares to the two partners, Shri J. R. Patel and Smt. Dhai Laxmi Patel. The Income-tax Officer relying on the provisions of Section 75 of the Income-tax Act, 1961 (hereinafter referred to as the Act) did not allow the assessee firm the benefit of the carry forward loss in the A. Y. 1970-71. The firm was required to pay tax as a registered firm on its total income of Rs. 80,1561 -.

( 2 ) THE assessee in the appeal taken