9911796707
TMI Blog2025 (5) TMI 1299X X X X Extracts X X X X X X X X Extracts X X X X ..... CPC, Bengaluru of not allowing set-off of brought forward unabsorbed depreciation against the income from other sources. 3. Facts in brief are that the assessee is a partnership firm having income from business. Return of income for assessment year 2021- 22 furnished on 18.01.2022 declaring Nil income after claiming setoff of brought forward unabsorbed depreciation against the income from other sources. The CPC, Bengaluru denied this claim and subsequently even in appeal before Ld. CIT(A), assessee failed to succeed as Ld. CIT(A) dismissed the assessee's appeal by observing as under :- "5.4 In the submission made the appellant has stated that set off of unabsorbed depreciation of Rs. 5,72,880/- which was carried forward from AY 2018-19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... book running into 308 pages and also referred to the judgements of the Hon'ble Bombay High Court in the case of CIT vs. Estate & Finance Ltd., 111 ITR 119 (Bombay) and the Hon'ble High Court of Gujarat in the case of CIT vs. Deepak Textiles Industries Ltd., [1995] 81 Taxman 375 (Gujarat) and stated that the unabsorbed depreciation is different from business loss and it can be carried forward for unlimited period and can be set-off against the income from other sources also. 6. Ld. DR supported the orders of the lower authorities. 7. We have heard rival contentions and perused the records placed before us. The only issue for our consideration is whether unabsorbed depreciation brought forward from previous year can be set-off against the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered view, brought forward unabsorbed depreciation needs to be added to current year depreciation and is treated as current depreciation loss. Once it takes the colour of current year depreciation then it becomes eligible for set-off against other income as provided in section 72(1) of the Act. The above provisions is squarely applicable in the facts of the instant case and, therefore, the claim of the assessee of setting-off of unabsorbed depreciation brought forward from preceding year against the current year income from other sources is valid and deserves to be allowed. Finding of Ld. CIT(A) is set-aside. Effective grounds of appeal raised by the assessee are allowed. 10. In the result, the appeal of the assessee is allowed. Ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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