Law: Income Tax Act, 1922

Section: 10(2)(vi)

Section 32, read with section 71 of the Income-tax Act, 1961 [Corresponding to section 10(2)(vi), read with section 24(1) of the Indian Income-tax Act, 1922] - Depreciation - Unabsorbed depreciation - Assessment year 1957-58 - Whether by virtue of deeming provisions contained in proviso (b) to section 10(2)(vi) of 1922 Act amount of depreciation allowance which has remained unabsorbed and which has been carried forward from preceding years is liable to be treated as part of depreciation allowance for assessment year in question and loss arising by reason of taking same into account is liable to be treated as a loss under head "profits and gains of business, profession or vocation" for assessment year and if section 24(1) of 1922 Act stood by itself such loss would be liable to be set off against income, profits or gains under any other head - Held, yes FACTS The assessee-company had certain amount of unabsorbed depreciation of preceding years. The assessee had also income falling under the head 'Income from property' which was determined. The ITO assessed the income on a total income. The assessee appealed against the decision of the ITO. The AAC held that by virtue of the provisions contained in section 10(2)(vi) the unabsorbed depreciation of the preceding year's was to be treated as a part of the depreciation allowance for the year in question. He, therefore, permitted the amount of unabsorbed depreciation to be set off against the income from property. On appeal by the revenue, the Tribunal upheld the decision of the AAC. On reference : HELD By virtue of the deeming provisions contained in proviso (b ) to section 10(2)(v) the amount of depreciation allowance which has remained unabsorbed and which has been carried forward from the preceding years is liable to be treated as part of the depreciation allowance for the assessment year in question and the loss arising by reason of taking the same into account is liable to be treated as a loss under the head 'profits and gains of business, profession or vocation' for the assessment year and if section 24(1) stood by itself such loss would be liable to be set off against income, profits or gains under any other…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492