TMI Blog2016 (2) TMI 1217X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the block of depreciable assets. - INCOME TAX APPEAL NO. 1337 OF 2016 - - - Dated:- 11-2-2016 - AKIL KURESHI B.P. COLABAWALLA, JJ. Mr. Suresh Kumar for the Appellant. Mr. Sunil Lala a/w Ms. Shilpa Denavalvi a/w Mr. Sameer Dalal for the Respondent. P.C. : The Revenue has filed this appeal challenging the Judgment of the Tribunal. The following questions of law are presented for our consideration. 1) Whether on the facts and in the circumstances of the case, the ITAT is right in allowing set off of unabsorbed depreciation of prior amounting to ₹ 6,01,66,399/- against long term capital gain without properly appreciation the legal provision as laid down by section 71 of the Act as per which brought forw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e depreciation of the subsequent year and the total depreciation becomes current year's depreciation as per section 32(1) of the Act, which is allowed to be set off against the income under any head of income. As per the provisions of section 32(2) of the Act r.w.s. 70, 71 and 72 of the Act, it becomes very clear that the total depreciation comprising of the depreciation of the relevant assessment year along with the unabsorbed depreciation of the earlier years becomes the total current year's depreciation which is allowed to be set off against income under any head of income including Long Term Capital Gain. Accordingly, we find no reason to interfere with the order of CIT(A) qua this issue and the same is hereby upheld. We also ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from any source under any of the other heads of income during that year. In case there is a still balance left over, it is to be treated as unabsorbed depreciation and it is taken to the next succeeding year. Where there is current depreciation for such succeeding year the unabsorbed depreciation is added to the current depreciation for such succeeding year and is deemed as part thereof. If, however, there is no current depreciation for such succeeding year, the unabsorbed depreciation becomes the depreciation allowance for such succeeding year. We are of the considered opinion that any unabsorbed depreciation available to an assessee on 1st April, 2002 (asst. yr. 2002-03) will be dealt with in accordance with the provisions of s. 32(2) as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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