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2011 (7) TMI 39 - HC - Income TaxDepreciation - Carry forward and set off of unabsorbed depreciation - whether the assessee can still be said to be in business or not - No doubt the hotel of the assessee was washed away and in that respect it can be said that it has not conducted any hotel business thereafter. However, the Company does not cease to exist - once the Company is in existence the assessee can seek depreciation - Decided in favour of the assessee Regarding unabsorbed depreciation - When the depreciation allowance of a business of the assessment year is not absorbed by any other business of the same assessment year, then the remaining unabsorbed depreciation allowance could be set off against the income under any other head, that is assessable for the same assessment year - since the hotel was not in existence therefore the un-absorbed depreciation became part of the depreciation for the assessment year 1998-99 and now could not be set off against the income from other sources - the fact is that this was depreciation of the previous year and the Finance Minister in his speech clearly indicated that there was no substantial change and that the only difference was that now limitation of 8 years would be applicable - Decided in favour of the assessee
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