The ITAT held that unabsorbed depreciation under section 32(2)...

The ITAT held that unabsorbed depreciation under section 32(2) qualifies as current year's depreciation and is eligible for set-off against income under any head, including "Income from other sources," irrespective of whether business activity was carried out during the relevant previous year. The tribunal found that the requirement of carrying on business during the year is not a condition precedent for invoking section 32(2). Consequently, the CIT(A)'s confirmation of disallowance based solely on the absence of business activity was contrary to statutory provisions and judicial precedents. The ITAT set aside the CIT(A)'s order and directed the AO to allow the set-off of brought forward unabsorbed depreciation for AY 2015-16 against the total income assessed. The assessee's appeal was allowed accordingly.

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