2008 (11) TMI 656

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the asseesee is directed against the order dated 22.9.06 of CIT(A) for assessment year 2003-04. The assessee in this appeal has raised disputes on two different grounds which have been dealt with in the succeeding paras. 2. The first dispute is regarding disallowance of depreciation on plant and machinery amounting to Rs. 78,881/-. The Assessing Officer noted that there was no manufacturing dur....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d the depreciation on the ground that thane was no manufacturing activity and therefore assets had not been used for the purpose of business. The case of the assessee is that the depreciation had been allowed on some assets in the same block and therefore it has to be allowed in respect of block as a whole in view of the decision of the Tribunal in ease of Blackwell Printers (supra). It is not cle....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... that the brought forward depreciation can be adjusted only against the profit and gains of business and not under any other head. Aggrieved by the said decision the assessee is in appeal. 3.1 We have heard both the parties, perused the records and considered the matter carefully. The Learned AR for the assessee reiterated the submissions made before the lower authorities whereas the Learned DR....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the unabsorbed depreciation carried forward can be adjusted only against business profit as the same has to form part of the depreciation of the subsequent year. In either case, the carried forward depreciation could not be adjusted against income under any other head. Under these circumstances we see no infirmity in the order of CIT(A) denying the claim of the assessee and the same is therefore u....