https://www.taxtmi.com/caselaws?id=25597 Whether unabsorbed depreciation may be carried forward and set off despite cessation of business: the HC held that s.32(2) creates a legal fiction treating unabsorbed depreciation as part of the allowance for subsequent years irrespective of actual business operations, and that s.41(1) and governing SC authorities support treating carried-forward depreciation as deductible even against income from other heads; absence of current-year business does not preclude the deduction. Result: the carried-forward unabsorbed depreciation was allowed to be set off against the assessable income for the assessment years 1969-70 and 1970-71 in favour of the assessee. en-us Tue, 18 Aug 1987 00:00:00 +0530 Thu, 15 Jan 2026 18:14:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25597 Whether unabsorbed depreciation may be carried forward and set off despite cessation of business: the HC held that s.32(2) creates a legal fiction treating unabsorbed depreciation as part of the allowance for subsequent years irrespective of actual business operations, and that s.41(1) and governing SC authorities support treating carried-forward depreciation as deductible even against income from other heads; absence of current-year business does not preclude the deduction. Result: the carried-forward unabsorbed depreciation was allowed to be set off against the assessable income for the assessment years 1969-70 and 1970-71 in favour of the assessee. Case-Laws Income Tax Tue, 18 Aug 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25597