Satyanarayana Rao, J.- An interesting question has been referred to us for decision under section 66(1) of the Indian Income-tax Act by the Income-tax Appellate Tribunal. The question for decision is:

“Whether on the facts and in the circumstances of the case,the taxed share income of Rs. 22,440 from the unregistered firm of Messrs. Dharmashi Brothers, could be set off against the loss of Rs. 52,569 sustained by the respondent Hindu undivided family in speculation business for the purpose of determining the loss to be carried forward under section 24 (2).”

The assessee is the kartha of a Hindu undivided family. The kartha was also a partner in an unregistered firm known as Messrs. Dharmashi Brothers. During the assessment year, the assessee received as his share of the profit of the unregistered firm a sum of Rs. 22,440 on which tax was collected from the unregistered firm. His account of the total income of the loss as compiled by the Income-tax Officer is as follows: It would be seen from this statement that the family incurred a loss of Rs. 52,569 in speculation. This loss was set off by the Income-tax Officer-which was affirmed by the Appellate Assistant Commissioner-against the

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