Law: Income Tax Ordinance, 1979

Section: 23,23(1)(v)

[Income Tax Ordinance, 1979].....Section 23(1)(v) Depreciation Unabsorbed depreciation leased asset Banking business Business income including lease rentais Depreciation allowance on leased assets Whether allowable against assessee's income from lease rentais only Held yes Unabsorbed depreciation allowance carried forward Whether adjustable against income from lease rentais of the subsequent years. Held yes. On consideration of the facts supra that respondents income both from banking as well as leasing of assets is chargeable to tax and both operations are controlled and managed jointly requiring no prorating of operational expenses. The only exception provided in law for computing income from lease rentais, I n cases of assessees who have income from business operations other than leasing business as well or have incomes under other heads also during the year, is that the allowance for depreciation to be made on any machinery or plant given on lease by such assessee shall be allowed against its income from lease rentais only. It shall neither be set off against Income from either any other business or under any other head during the year nor against income from any other business in any succeeding year. Thus the only method to compute/determine the amount of allowance for depreciation that may remain unabsorbed against income from lease rentais is to adjust the amount of such allowance for depreciation First against the amount of lease rentais received by the assessee and then any other allowance or deduction provided under other clauses of s. S. (1) of Section 23 along with income from any other business so that any excess of admissible allowance for depreciation over the income from lease rentais is carried forward u/s 35 to be adjusted against the income from lease rentais of the subsequent year or years as the case may be. Case referred to: ORDER [The Order was passed by S. M. Sibtain, Accountant Member J. ] ---These two appeais are instituted at the Instance of the Department against orders recorded by the learned Cit(A) in ITA No. 358/AVI dated 22-9-1997 (1994-95 u/s 132) and in ITA No. 289/VI in respect of assessment order for assessment year 199596,…

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