2006 (8) TMI 125 - HC - Income Tax

Adjustment of the unabsorbed depreciation against the income from other sources - "Whether, Tribunal is right in holding that the assessment order passed by the Assessing Officer allowing the claim of the assessee for adjustment of the unabsorbed depreciation against the income from other sources was in order and hence cannot be considered to be erroneous or prejudicial to the interests of the Revenue and in cancelling the order under sections 263?" – Commissioner directed that the unabsorbed depreciation and unabsorbed investment allowance should be adjusted against the income of the export-oriented business undertaking and the total income of the assessee should accordingly be recomputed afresh. - calculation cannot be at the whims and fancies of an assessee for exemption of tax - Commissioner is fully justified in holding that the assessee is not justified in showing nil return. We, therefore, deem it proper to answer the questions of law in favour of the Revenue. Consequently, the order of the Tribunal has to be set aside and the order of the Commissioner has to be accepted