Deduction U/s. 80HHC is allowable only after adjustment of unabsorbed depreciation of earlier years from current year profit

As per Supreme Court’s Judgments deduction can be claimed only against positive profits and positive profit necessarily implies the adjustments and set off of the depreciation allowance of earlier years and carried forward losses of earlier years. The benefit under section 80HHC can be claimed only after the unabsorbed depreciation of the earlier years is adjusted against the profits of the current year and then only the benefit extended under section 80HHC can be given effect to. HIGH COURT OF KARNATAKA J.K. Industries Ltd. v. Assistant Commissioner of Income-tax IT Appeal No. 1105 of 2...