Case Law Details
Hindon River Mills Ltd. Vs DCIT (ITAT Delhi)
The limited issue which arises in the present appeal is whether unabsorbed depreciation available in the hands of the assessee, where the business of the assessee has been temporarily closed and the assets leased for a short period in order to tide over the losses of business, then can the unabsorbed depreciation be adjusted against the income from property earned from leasing of the said assets.
We find that the issue arising in the present appeal is at parity with the issue before the Tribunal in assessee’s own case relating to Assessment Year 2011-12. Relying on the said findings of the Tribunal in paras 14 & 15, to which reference is being made, but not being reproduced for the sake of brevity, we allow the claim of the assessee in entirety. The Assessing Officer is directed to set off brought forward unabsorbed depreciation as part of current depreciation against the income from house property and income from other source, since the brought forward unabsorbed depreciation was the depreciation of the current year. Thus, grounds of appeal raised by the assessee are allowed.
FULL TEXT OF THE JUDGMENT/ORDER of DELHI HIGH COURT
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