Judgment :- C.N. Ramachandran Nair, J. These Tax Revision Cases are filed under Section 78 of the Kerala Agricultural Income Tax Act, against the common order of the Agrl. Income Tax Act, against the common order of the Agrl. Income Tax Appellate Tribunal for the assessment years 1970-71, 1973-74, 1974-1975 and 1975 76. The only question that arises for consideration is whether the assessee is entitled to carry forward of loss from one year to the next year, if in the succeeding year, the assessee does not earn any profit. In this case, the Tribunal noticed that for the assessment year 1969-70 the assessee suffered a loss. Even though the assessee is entitled to carry forward the loss to the next year by virtue of Section 12 of the Agrl. Income Tax Act, 1950, the same was not allowed for the reason that for the assessment year 1970-71 the assessee had no positive income, but suffered loss in the agricultural operations in that year also. The position is the same for the subsequent assessment years also where carry forward loss was disallowed for the reason that the assessee did not make profit in the following year. If the interpretation given to Section 12 by the Officer and confirmed by the Tribunal is upheld, the consequence would be that carry forward of loss and set off against agrl. Income of an assessee can be granted only in the alternate year if the assessee makes profit. In order to appreciate the contention, we extract hereunder Section 12 of the AIT Act, 1950 for easy reference: 12. Carrying forward of loss:- Where any person sustains loss in agricultural income in any year the loss shall be carried forward to the following year and set off against the agricultural income for that year and if it cannot be wholly so set off, the amount of loss not so set off, shall be carried forward to the following year and so on; but no loss shall be carried forward for more than six years. 2. 2. Counsel for the assessee contended that if loss for any year carried forward to the next year cannot be set off against income of that year on account of loss in that year also, the loss has be computed for that year also and the losses computed in successive years should be carried forward to be set off against income in any succeeding year, subject to the limitation of six years provided in the section. His specific case is that income takes in loss as well which is virtually negative income and therefore set off includes addition of loss to loss only to be carried forward to the succeeding year in terms of the section. Counsel for the petitioner in support of his contention relied on the decision of the Supreme Court in C.I.T. Vs. Harparasad & Co. P. Ltd., (1975) 3 S.C.C. 868). Government Pleader on the other hand contended that section provides for partial set off of loss against income for the subsequent assessment year and therefore Section is applicable only when there is positive income in the succeeding year. We are unable to uphold this contention and impugned order of the Tribunal because the only restriction in Section 12 is that loss cannot be carried forward for a period beyond six years. Subject to this limitation loss can be carried forward from one year to the following year and in the following year, if there is a loss, such loss also has to be carried forward along with loss already carried forward and set off can be made only in the year in which there is income. However, on expiry of six years the assessee will forfeit the benefit of carried forward loss of the year beyond six years. This obviously means that the earliest eligible loss should be first set off and balance should be carried forward to the succeeding year. In this view of the matter we allow the Tax Revision Cases by setting aside the order of the Tribunal and directing the assessing officer to modify the assessment by allowing carry forward and set off of loss of any year upto six years, subject to compliance with other requirements.