JUDGMENT : S.C. Mohapatra, J. - This is a reference u/s 256(1) of the Income Tax Act, 1961, at the instance of the Revenue. The question raised for an answer is follows ; "Whether the assessee is a registered-firm and any loss which cannot be set off against any other income of the firm shall be apportioned between the partners of the firm and they alone shall be entitled to have the amount of the loss set off and carried forward for set off under Sections 70, 71, 72, 73 74 and 74A ?" The substance of the question is as follows : Whether a firm which is entitled to set off its loss against its income in a particular year can carry forward the same to get the benefit in the subsequent year. For answering this question, Section 75 of the Act is to be kept in mind. It reads as follows : "75. Losses of registered firms.--(1) Where the assessee is a registered firm, any loss which cannot be set off against any other income of the firm shall be apportioned between the partners of the firm, and they alone shall be entitled to have the amount of the loss set off and carried forward for set off under Sections 70, 71, 72, 73, 74 and 74A, (2) Nothing contained in Sub-section (1) of Section 72, Sub-section (2) of Section 73 or Sub-section (1) or Sub-section (3) of Section 74 or Sub-section (3) of Section 74A shall entitle any assessee, being a registered firm, to have its loss carried forward and set off under the provisions of the aforesaid sections." The assessee was being assessed for the assessment year 1977-78. In the return originally filed, its income was shown to be Rs. 19,200 but, subsequently, on the basis of a notification of the Government of India dated December 30, 1976, the assessee filed a revised return showing a loss of Rs. 30,910. The assessing officer did not accept the same and completed the assessment. In appeal, the order of assessment was confirmed. In second appeal before the Tribunal, relying on the decision of the Madras High Court reported in Commissioner of Income Tax Vs. Madras Wire Products the Tribunal held that a registered firm is entitled to set off the loss and carry forward the same for subsequent years to get the benefit. In appeal, the order of assessment was confirmed. In second appeal before the Tribunal, relying on the decision of the Madras High Court reported in Commissioner of Income Tax Vs. Madras Wire Products the Tribunal held that a registered firm is entitled to set off the loss and carry forward the same for subsequent years to get the benefit. This is the grievance of the Revenue. 2. Section 75 of the Act already quoted clearly indicates the manner in which advantage can be taken by a firm in respect of its loss. Section 75 makes the position clear that it is a restrictive benefit to a firm. The language of Section 75(1) is clear that a loss which cannot be set off shall be apportioned between the partners. They can take the benefit of Sections 70, 71, 72, 73, 74 and 74A and carry forward the loss. They themselves exclude a firm from carrying forward the loss to the subsequent years. It is true that the Madras High Court, in the decision relied upon by the Tribunal as well as in another decision reported in Commissioner of Income Tax, Tamil Nadu-II Vs. Madras Wire Products held that the principles of Sections 70 to 74A are also applicable to a firm. In view of the clear language in Section 75 of the Act, with great respect to the view of the Madras High Court, we are not able to accept such a view. 3. In view of our aforesaid discussions, the questions to be answered as follows ; A registered firm which has sustained loss in one year can set off its loss against the income of that year and cannot carry forward unabsorbed loss to the subsequent years to get the benefit. In the result, the question is answered in favour of the Revenue. There shall be no order as to costs. S.K. Mohanty, J. 4. I agree.