Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (3) TMI 1023 - HC - Income TaxSet off and carry forward of unabsorbed loss including unabsorbed depreciation - assessee was not allowed to carry forward the losses by virtue of section 80 as it had not filed loss return within the time prescribed under section 139(3) of the Act as only such losses which have been determined in pursuance of return filed in accordance with provisions of section 139(1) & (3), could be carried forward - Held that:- Section 32 deals with the different types of depreciation whereas section 80 deals with carry forward of unabsorbed losses other than losses on account of depreciation. If that was not so, there was no need for Legislature to provide specific provision for carrying forward of depreciation under section 32 of the Act. It has already been noted that in case of Nagapatinam Import & Export Corpn. (1979 (1) TMI 53 - MADRAS High Court) which was relied by our High Court in the case of J. Patel & Co. (1984 (4) TMI 53 - DELHI High Court) whereby, it was held that section 72 contemplates loss other than unabsorbed depreciation and there was a time-limit within which loss can be adjusted, whereas in the case of unabsorbed depreciation there is no time-limit and further that under the statute there is a separate identity with respect to unabsorbed depreciation though at the time of computation, it becomes a part of loss. Thus it comes out that the effect of section 32(2) is that unabsorbed depreciation of a year becomes part of depreciation of subsequent year by legal fiction and when it becomes part of current year depreciation it is liable to be set off against any other income, irrespective of the fact that the earlier years return was filed in time or not - in favour of the assessee.
|