Case Law Details
DCIT Vs Regency Property Investment Pvt. Ltd. (ITAT Mumbai)
The issue under consideration is whether set off of the ‘unabsorbed depreciation’ can be allowed irrespective of continuity of the business in next year?
In the given case, the assessee had ‘set off’ its entire ‘Income from house property’ of Rs. 2,15,72,559 and ‘Income from other sources’ of Rs. 5,66,579 against the brought forward ‘unabsorbed depreciation’ of the earlier years. The assessing officer held a conviction that as the assessee had admittedly discontinued its business activities in previous year, therefore, it was not entitled to claim ‘set off’ of losses of earlier years against its income for the current year.
As per section 32(2), ITAT are of the considered view that as the ‘set off’ of the ‘unabsorbed depreciation’ cannot be bridled with a condition that the business should be continued by the assessee in the said year, therefore, the claim of ‘set off’’ of the brought forward ‘unabsorbed depreciation’ by the assessee against its current year ‘Income from house property’ of Rs. 2,15,72,559 and ‘Income from other sources’ of Rs. 5,60,579 is found to be in conformity with the mandate of law. ITAT thus not finding any infirmity in the order of the Commissioner (Appeals), who had rightly vacated the incorrect view taken by the assessing officer, therefore, uphold his order.
FULL TEXT OF THE ITAT JUDGEMENT
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