High Court allows set off of unabsorbed depreciation for assessee-firm

The High Court of Punjab and Haryana ruled in favor of the assessee-firm, allowing the set off of unabsorbed depreciation for assessment years 1971-72 and 1973-74. The court held that the unabsorbed depreciation should be set off from the firm's income for the assessment year 1973-74 and subsequent years until fully absorbed, based on the interpretation of relevant provisions of the Income-tax Act, 1961 and previous court decisions.

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The High Court of Punjab and Haryana ruled in favor of the assessee-firm regarding the set off of unabsorbed depreciation for assessment years 1971-72 and 1973-74. The court held that the unabsorbed depreciation should be set off from the firm's income for the assessment year 1973-74 and subsequent years until fully absorbed. The decision was based on the interpretation of relevant provisions of the Income-tax Act, 1961 and previous court decisions.

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