Case Law Details
J.B Advani & Company Pvt Ltd. Vs ACIT (ITAT Mumbai)
ITAT Mumbai held that the unabsorbed depreciation which is carried forward from earlier years is permitted to be set off against the short term capital gains.
Facts-
The assessee company is engaged in the business of manufacturing and supply of electrical steel lamination, gas cutting products, gas regulators, and assembling of welding equipment, & AC/DC ARC Welders. The assessee has filed the return of income disclosing a total income of Rs Nil. The case was selected for limited scrutiny. AO found that the assessee has adjusted and brought forward unabsorbed depreciation of Rs.15,11,939/-against the income of the current year, whereas the assessee has disclosed the income under the head, income from house property, short-term capital gains, and income from other sources and the business loss of Rs. 2,27,37524/-.
AO has disallowed the setoff of unabsorbed deprecation of earlier year and assessed the total income of Rs.15,11,940/- and passed the order u/s. 143(3). CIT(A) confirmed the action of AO. Being aggrieved, the present appeal is filed.
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