TMI Blog2002 (9) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... unabsorbed depreciation carried forward from earlier years could not be allowed against the income assessed under section 56 of the Act under the head "Income from other sources". Consequently, the first question is answered in the negative, i.e., in favour of the assessee and against the Revenue. - As regards the second question, Mr. Aggarwal, learned counsel for the assessee, submits that the assessee, at whose instance, the reference has been made, is not interested in getting an answer from this court on the question. Accordingly, the second question is returned unanswered. - - - - - Dated:- 11-9-2002 - Judge(s) : D. K. JAIN., MS. SHARDA AGGARWAL. JUDGMENT The judgment of the court was delivered by D. K. JAIN J. - At the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the head "Income from other sources" and not under the head "Profits and gains of business". He, accordingly, assessed the receipts on account of sale of drawings and industrial files (Rs. 12,48,000); profit on sale of other assets (Rs. 31,286) and other receipts (Rs. 83,374) under the head "Income from other sources". The entire expenditure of Rs. 25,48,083 incurred by the assessee during the previous year was also disallowed and only a sum of Rs. 1,36,266, being 10 per cent. of the total aforementioned receipts, was allowed as deduction. The depreciation for the current year and unabsorbed depreciation for earlier years was also disallowed. Thus, the total income for the year was assessed at Rs. 12,26,394. Being aggrieved, the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 's case [1995] 216 ITR 607 (SC), the assessee was engaged in the manufacture of soap and oil during the previous year relevant to the assessment year 1956-57. The business was stopped in that year, whereafter the factory was let out on hire. Ten years later, i.e., in the previous year relating to the year 1965-66, the assessee started the business of manufacture of steel pipes. For the purpose of this business, a part of the old machinery used in the manufacture of soap and oil was utilised. In the assessment proceedings relating to the assessment year 1965-66, the assessee claimed that the unabsorbed depreciation, to the extent it pertained to the old machinery utilised in the new business, should be brought forward and set off against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e heads of income specified in section 14 of the Act, which includes "income from other sources". In view of the said authoritative pronouncement, we are of the opinion that the Tribunal was not right in holding that the unabsorbed depreciation carried forward from earlier years could not be allowed against the income assessed under section 56 of the Act under the head "Income from other sources". Consequently, the first question is answered in the negative, i.e., in favour of the assessee and against the Revenue. As regards the second question, Mr. Aggarwal, learned counsel for the assessee, submits that the assessee, at whose instance, the reference has been made, is not interested in getting an answer from this court on the questio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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