1. The question referred to us by the Income-tax Appellate Tribunal, Cochin Bench is "Whether on the facts and in the circumstances of the case, Rs. 42,632 being the assessee's share of loss from M/s. Tyre A Rubber Industries, is to be set off against Rs. 50,284 being the share income of the minor children of the assessee from the firm, M/s. Ignatius Mill Stores for the assessment year 1976-77?"

2. That arises on the following facts. During the accounting year relevant to the assessment year 1976-77 the assessee, an individual, was a partner in M/s. Tyre & Rubber Industries and also M/s. Natius Latex Industries. Her two minor children were admitted to the benefits of a partnership, M/s. Ignatius Mill Stores. During the relevant accounting year the assessee's share of loss from M/s. Tyre & Rubber Industries was Rs. 42,636/- and her share of income from M/s. Natius Latex Industries was Rs. 3,764/-. The share income of each of the minor children of the assessee from the firm M/s. Ignatius Mills was Rs. 25,142/-. The assessee filed a return disclosing an income of Rs. 4,200/-. The loss incurred by her in the firm of M/s Tyre & Rubber Industries was set off by her against the