1972 (10) TMI 8

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....ct can be set off against income under other heads? " The assessee is a public limited company and the question referred to us relates to the assessment year 1961-62, the relevant previous year the financial year ending March 31, 1961. The income of the assessee from business under section 10 before allowing depreciation was Rs. 1,19,67,810. Out of that, depreciation for the year was deducted as amounting to Rs. 51,80,953. After taking into account the depreciation for the current year, the income left over was Rs. 67,86,857. Besides, there was unabsorbed depreciation of the previous year in respect of which a set-off was claimed. The whole of the sum of Rs. 67,86,857 was permitted to be set off against the unabsorbed depreciation of ....

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....s Ltd. but it is concluded by the decision of the Supreme Court in Commissioner of Income-tax v. Jaipuria China Clay Mines (P.) Ltd. As the ratio of the decision of the Supreme Court directly applies to the facts of the present case, further controversy between the parties does not arise. In the case before the Supreme Court, the total income of the respondent-company for the assessment year 1952-53 before charging depreciation was Rs. 14,041. After deducting depreciation of Rs. 5,360 the Income-tax Officer computed the profit of Rs. 8,681 against the whole of which he set off losses of an earlier year. The Income-tax Officer then computed the dividend income of the respondent at Rs. 2,01,130, determined the total income at that figure and ....