2002 (3) TMI 596

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.... Joginder Pall, Accountant Member - By this order we shall dispose of these two appeals of the Revenue filed against two orders of CIT(A) (Central), Ludhiana for the assessment years 1991-92 and 1992-93. Since the common issues are involved, both the appeals were heard together and are being disposed of by this consolidated order for the sake of convenience. 2. One common issue raised in bot....

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....the ground that after allowing set off depreciation, there was no positive income against which these deductions could be allowed. 3. Being aggrieved, the assessee filed appeals before the CIT(A). The ld. CIT(A) held that there is no bar in the Income-tax Act for allowing deduction under sections 35D & 43B even if there is no positive profit. Accordingly, he allowed the appeals of the assessee.....

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....provisions in the Act which provide that deductions under sections 35D & 43B could be allowed only if there is a positive income. In fact, the profits and gains of the business are to be computed in accordance with the provisions of sections 28 to 44D. All those deductions which the assessee is entitled to as per these provisions have to be allowed subject to specific provisions dealing with carry....