TMI Blog2020 (1) TMI 1053X X X X Extracts X X X X X X X X Extracts X X X X ..... hands of the assessee and the set off of unabsorbed depreciation against income from house property and income from other sources was not allowed by the CIT(A)/Assessing Officer. The Tribunal relied on the ratio laid down in M/s. Suresh Industries Pvt. Ltd. relating to Assessment Year 2007-08 in [ 2012 (11) TMI 674 - ITAT MUMBAI] which in turn relied on the decision of Jaipuria China Clay Mines Pvt.Ltd. [ 1965 (11) TMI 32 - SUPREME COURT] , Rajapalayam Mills [ 1978 (10) TMI 4 - SUPREME COURT] and Virmani Industries Pvt.Ltd. [ 1995 (10) TMI 1 - SUPREME COURT] and applied the said propositions vide paras 14 15 at pages 05 to 12 and allowed the claim of the assessee, by holding that brought forward depreciation had to be trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to Assessment Year 2011-12 order dated 28.08.2019. 3. The Ld.DR on the other hand placed reliance on the orders of the authorities below. 4. We have heard the rival contentions and perused the record. The only issue raised by the assessee in the present appeal is against the enhancement order of CIT(A) by not allowing set off of unabsorbed depreciation against the income earned by the assessee. 5. Briefly in the facts of the case the assessee company was engaged in the business of manufacturing of yarn and fabric. The assessee due to heavy loss, labour problems and other factors had to temporarily discontinue the manufacturing operation in the year 2000. During the year under consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess income. The assessee filed its reply and relied on various case laws, which is reproduced in the appellate order. The CIT(A) was of the view that the issue of set off of unabsorbed depreciation against the other income needs to be deliberated upon. After referring to various provisions of the Act, he came to the conclusion that in a particular year, depreciation could be deducted only on the profits chargeable under the head business income. Referring to the provisions of section 72 73 of the Act, the CIT(A) held that there was nothing in the Income Tax Act, which would allow set off of brought forward unabsorbed depreciation against the income under any head other than the income from business or profession. The CIT(A) also refers to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e before the Tribunal (supra) in assessee s own case in Assessment Year 2011-12. Similar disallowance was made in the hands of the assessee and the set off of unabsorbed depreciation against income from house property and income from other sources was not allowed by the CIT(A)/Assessing Officer. The Tribunal relied on the ratio laid down by the Mumbai Bench of the Tribunal in M/s. Suresh Industries Pvt. Ltd. relating to Assessment Year 2007-08 in ITA No. 5374/Mum/2011 dated 10.10.2012 which in turn relied on the decision of Hon ble Supreme Court in Jaipuria China Clay Mines Pvt.Ltd. 59 ITR 555, Rajapalayam Mills 115 ITR 77 and Virmani Industries Pvt.Ltd. 216 ITR 607 and applied the said propositions vide paras 14 15 at pages 05 to 12 and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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