1961 (8) TMI 69

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..... by the Income Tax Appellate Tribunal (hereinafter referred to as the Tribunal) under section66 (1) of the Indian Income Tax Act (here in after referred to as the Act). The assessee is a limited liability company incorporated in the then State of Indore. It has a textile mill at Indore where the company carried on its business in the relevant years of manufacture and sale of textiles. The relevant .....

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..... e rise to this question of law. The income earned by the assessee in British India in the assessment years 1940-41 and 1941-42 being more than the income earned by it outside British India, the assessee was treated as a resident for purposes of assessment of Income Tax on it. The result was the assessee's total world income, that is, income earned in the Indore State as well as income earned i .....

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..... non-resident, the total income of the assessee would include only the income earned by it in British India and not the income earned by it outside British India. It was the assessee's contention that the unabsorbed depreciation allowance amounting to ₹ 5 lakhs and odd was adjustable only against its total income and not its world income. In other words, the unabsorbed depreciation allowa .....

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..... he assessee is a registered firm, in the assessment of its partners, full effect cannot be given to any such allowance in any year not being a year which ended prior to the 1st day of April, 1939, owing to there being no profits or gains chargeable for that year, or owing to the profits or gains chargeable being less than the allowance, then, subject to the provisions of clause (b) of the proviso .....

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..... of the question as to whether the depreciation amount determined for the assessment year is deductible against the total world income of the assessee. It is not in dispute that in the instance case the amount of depreciation determined for the assessment year 1942-43 was deductible against the total world income of the assessee. That being the position, in our opinion carried forward depreciation .....

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