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| The Tax Publishers2020 TaxPub(DT) 0574 (Del-Trib) INCOME TAX ACT, 1961
Section 32(2)
As decided in assessee's own case brought forward depreciation had to be treated as current year's depreciation under the provisions of section 32(2) and AO was directed to set off brought forward unabsorbed depreciation as part of current year's depreciation against the income from house property and income from other source, since the brought forward unabsorbed depreciation was the depreciation of the current year.
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Depreciation - Unabsorbed depreciation - Set off against property income -
Issue arose for consideration as to whether unabsorbed depreciation was available in the hands of assessee, where the business of the assessee was temporarily closed and the assets leased for a short period in order to tide over the losses of business, then could the unabsorbed depreciation be adjusted against the income from property earned from leasing of the said assets. Held: Similar issue arose before Tribunal in assessee's own case where in Tribunal had held that brought forward depreciation had to be treated as current year depreciation under the provisions of section 32(2). AO was directed to set off brought forward unabsorbed depreciation as part of current year's depreciation against the income from house property and income from other source, since the brought forward unabsorbed depreciation was the depreciation of the current year.
REFERRED : CIT v. Virmani Industries Pvt. Ltd. (1995) 216 ITR 607 (SC) : 1995 TaxPub(DT) 1370 (SC) Rajapalayam Mills Ltd. v. CIT (1978) 115 ITR 77 (SC) : 1978 TaxPub(DT) 1029 (SC) CIT v. Jaipuria China Clay Mines Pvt. Ltd. (1966) 59 ITR 555 (SC) : 1966 TaxPub(DT) 0229 (SC) Hindon River Mills Ltd. v. Dy. CIT [ITA No. 2301/Del/2016, dt. 28-8-2019] : 2019 TaxPub(DT) 5848 (Del-Trib) Suresh Industries (P.) Ltd. v. Asstt. CIT [ITA No. 5374/Mum/2011, dt. 10-10-2012] : 2013 TaxPub(DT) 0181 (Mum-Trib)
FAVOUR : In assessee's favour
A.Y. : 2012-13
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