https://www.taxtmi.com/caselaws?id=36238 The High Court of Karnataka ruled in favor of the assessee, affirming the Tribunal's decision to allow the set-off of unabsorbed depreciation against profits under section 41(2) of the Income Tax Act, 1961. The case involved M/s. Kapila Textiles (P.) Ltd., which had ceased business in 1956 and went into liquidation in 1958. Despite the business not being operational during the relevant accounting year, the court held that the condition did not apply to the set-off of unabsorbed depreciation under section 32(2). The court's decision aligned with a judgment of the Allahabad High Court in a similar case, rejecting the department's appeal. en-us Mon, 02 Mar 1981 00:00:00 +0530 Sat, 20 Mar 2010 12:11:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36238 The High Court of Karnataka ruled in favor of the assessee, affirming the Tribunal's decision to allow the set-off of unabsorbed depreciation against profits under section 41(2) of the Income Tax Act, 1961. The case involved M/s. Kapila Textiles (P.) Ltd., which had ceased business in 1956 and went into liquidation in 1958. Despite the business not being operational during the relevant accounting year, the court held that the condition did not apply to the set-off of unabsorbed depreciation under section 32(2). The court's decision aligned with a judgment of the Allahabad High Court in a similar case, rejecting the department's appeal. Case-Laws Income Tax Mon, 02 Mar 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36238