ITAT allows set-off of unabsorbed depreciation against income from other sources

Hotel Ayodhya Vs ADIT (ITAT Pune) In a recent ruling, the Income Tax Appellate Tribunal (ITAT), Pune Bench, delivered a significant decision in the case of Hotel Ayodhya against the Assistant Director of Income Tax (ADIT), CPC, Bengaluru. The dispute centered on whether unabsorbed depreciation carried forward from previous assessment years could be set off against income from other sources. The ITAT’s verdict, pronounced on March 27, 2025, sided with the assessee, allowing the set-off and overturning the previous orders. The appellant, Hotel Ayodhya, a partnership firm, had filed its return ...