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2014 (10) TMI 74 - HC - Income TaxClaim of unabsorbed depreciation under Capital gains – Restriction u/s 34A – Held that:- The carry forward and set off of unabsorbed depreciation allowance was considered in Commissioner of Income Tax vs Jaipuria China Clay Mines (P) Ltd [1965 (11) TMI 32 - SUPREME Court] - the unabsorbed depreciation of the past years should be added to the depreciation of the current year and the aggregate of the unabsorbed depreciation and the current year's depreciation to be deducted from the total income of the previous year relevant for the assessment year 1952-53, and answered in favour of the assessee - the unabsorbed depreciation can be allowed under the head capital gains , however, it shall be restricted to 2/3rd of such allowance – thus, the matter is remitted back to the AO for re-computation of the unabsorbed depreciation and since the Company is in liquidation, the AO shall issue notice to the Official Liquidator – Decided in favour of Revenue.
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