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2014 (12) TMI 1011 - ITAT HYDERABADClaim of set off of unabsorbed depreciation against the rental income treated as income from other sources – discontinued activity - Held that:- Assessee rightly relied upon Commissioner Of Income-Tax Versus Premchand Jute Mills Limited [1986 (3) TMI 29 - CALCUTTA High Court] wherein it has been held that the assessee was entitled to carry forward the unabsorbed depreciation u/s 32(2) without any reference to section 57 - the assessee was entitled to deduction in respect of expenditure and depreciation in accordance with section 32(2) - The specific mention of section 32(2) in section 57 permits deduction of the unabsorbed carry forward depreciation of earlier years from the income received form plant, machineries or furniture let out – what is spoken to u/s 32(2) is as regards set off of unabsorbed depreciation as per clause (ii) of sub section (1) and when the unabsorbed depreciation could not be set off as against the income from business or profession by reason of there being no income available under the said heads and where there is income from other sources, effect must be given to Section 32(2) of the Act for that assessment year - thus, the order of the CIT(A) is set aside and the AO is directed to give appropriate relief to the assessee by allowing set off of unabsorbed depreciation of the AY 2003-04 and 2004-05 against the rental income assessed to tax in the years – Decided in favour of assessee.
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