High Court allows deduction of unabsorbed depreciation from profits for firm

The High Court of Bombay allowed the deduction of brought forward unabsorbed depreciation from profits of certain assessment years for the assessee, a registered firm, to calculate total income. The judgment favored the assessee, with reference made to a previous decision supporting their position. No costs were awarded in this case.

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The High Court of Bombay ruled in favor of the assessee, a registered firm, allowing deduction of brought forward unabsorbed depreciation from profits of assessment years 1970-71 and 1971-72 to calculate total income. The judgment was delivered by Judge T. D. Sugla. The Department's counsel admitted the decision in Ballarpur Collieries Co. v. CIT [1973] 92 ITR 219 supported the assessee's position. No costs were awarded.

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