https://www.taxtmi.com/caselaws?id=26502 The court held that unabsorbed depreciation from earlier years cannot be set off against income from business, income from other sources, and capital gains unless the business is carried on in the succeeding year. The court rejected the argument that the fiction in section 32(2) eliminates the need for ongoing business activities. The decision emphasized that sections 71 and 72 are not applicable for setting off unabsorbed depreciation as they pertain to business losses, not depreciation allowances. The assessee was directed to bear the costs of the reference. en-us Wed, 19 Mar 1986 00:00:00 +0530 Fri, 05 Feb 2010 14:40:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26502 The court held that unabsorbed depreciation from earlier years cannot be set off against income from business, income from other sources, and capital gains unless the business is carried on in the succeeding year. The court rejected the argument that the fiction in section 32(2) eliminates the need for ongoing business activities. The decision emphasized that sections 71 and 72 are not applicable for setting off unabsorbed depreciation as they pertain to business losses, not depreciation allowances. The assessee was directed to bear the costs of the reference. Case-Laws Income Tax Wed, 19 Mar 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26502