1991 (4) TMI 178

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....er profit & Loss A/c.: Rs. 17,633.25 Add : Depreciation separately considered Rs. 17,153.00 -------------------------- Business Loss Rs. 500.25 -------------------------- Depreciation of Rs. 17,153 is to be carried forward." For assessment year 1987-88 together with return of income the statement of income showed following position :--- "Profit as per Profit/Loss Rs. 26,916 Less : Unabsorbed Depreciation for Assessment year 1986-87 Rs. 17,153 -------------------------- Rs. 8,763 " -------------------------- 3. The assessing officer rejected the claim for unabsorbed depreciation of assessment year 1986-87 observing that the said return was filed on 3-2-1988 as against the due date of 30th June, 1986 and....

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....e assessee incurred business loss of Rs. 500 and that is why the return was treated as non est. In this process the assessing officer accepted the position that full effect could not be given to the depreciation allowance of Rs. 17,153 in assessment year 1986-87 and, therefore, requirements of section 32(2) got complied with. This amount of depreciation for assessment year 1986-87 had to be considered under section 32(1) of the Act because of the specific language of section 32(2) of the Act. Therefore, the assessee's claim could not be rejected on the ground taken by the tax authorities. Even otherwise since the claim was made for the depreciation allowance in the current year not only in respect of the current year's depreciation but also....