Generate professional replies to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Step 1 – Issue Identification & Review
The AI analyses your query, notice, order, or uploaded documents and identifies the key issues involved.
• Review the issues identified by the AI • Add, edit, remove, or refine issues as required
Step 2 – Draft Generation
Once you approve the issues, the AI performs issue-wise legal research and prepares a structured draft response.
• Relevant statutory provisions • Judicial precedents and Supreme Court, High Court and other citations • Issue-wise legal analysis • Practical arguments and supporting content • Professionally structured draft ready for further review.
Tribunal rules unabsorbed depreciation can't offset current year's income for section 10B deduction The Tribunal allowed the appeal in favor of the assessee, holding that unabsorbed depreciation from previous years cannot be set off against current ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tribunal rules unabsorbed depreciation can't offset current year's income for section 10B deduction
The Tribunal allowed the appeal in favor of the assessee, holding that unabsorbed depreciation from previous years cannot be set off against current year's income for the purpose of claiming deduction under section 10B of the Income Tax Act. The Tribunal relied on decisions from various High Courts, including Bombay, Karnataka, and Delhi, in favor of the assessee. The AO's decision to confirm the set off of unabsorbed depreciation and denial of deduction under section 10B was overturned, directing the AO to grant the deduction as claimed by the assessee.
Issues involved: Appeal against order confirming set off of unabsorbed depreciation from current business profits and denial of deduction u/s 10B of the Act.
Confirmation of set off of unabsorbed depreciation: The AO observed unabsorbed loss on depreciation from A.Y. 2008-09 not set off before claiming deduction u/s 10B. Assessee cited Hon'ble Karnataka High Court's decision in favor, but AO relied on Hon'ble Kerala High Court's decision against. CIT(A) upheld AO's action, considering various case laws. Assessee appealed to Tribunal, reiterating arguments. Tribunal noted Hon'ble Bombay High Court's decision favoring assessee, allowing deduction u/s 10B without setting off brought forward depreciation against current year's income. Tribunal followed Hon'ble Bombay, Karnataka, and Delhi High Courts' decisions, allowing the issue in favor of the assessee.
Denial of deduction u/s 10B: Assessee claimed deduction u/s 10B, but AO set off unabsorbed depreciation against business profits before granting exemption. CIT(A) confirmed AO's action, citing various Tribunal decisions against the assessee. Assessee argued before Tribunal, referencing Hon'ble Karnataka High Court's decision and Hon'ble Delhi High Court's recent decision in favor. Tribunal considered all orders and decisions, including Hon'ble Bombay High Court's ruling, and held that brought forward depreciation cannot be set off against current year's income for exemption u/s 10B. Tribunal allowed the issue in favor of the assessee, directing AO to grant deduction u/s 10B as claimed.
Separate Judgement by Judge: No separate judgment delivered by the judges.
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