Carry-forward of unabsorbed depreciation by a successor company was refused where the claim failed on the facts and prior connected reasoning.

Successor company carry-forward of predecessor's unabsorbed depreciation was denied on the facts and circumstances of the reference, which followed the view already taken in a connected matter involving the same question. The court held that the Income-tax Officer was correct in law in refusing to carry forward the unabsorbed depreciation into the company's relevant assessment year.

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Issues: Whether the successor company was entitled to carry forward and set off the predecessor's unabsorbed depreciation allowance in the relevant assessment year.

Analysis: The reference was decided by following the opinion already expressed in the connected matter concerning the assessment of another company on the same question. On the facts and circumstances, the claim to carry forward the unabsorbed depreciation was rejected.

Conclusion: The Income-tax Officer was correct in law in refusing to carry forward the sum of Rs. 77,060 as unabsorbed depreciation into the 1938-39 assessment of the company.

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