1929 (10) TMI 3

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....ness, the excess depreciation can be set off against the profits and gains of the other businesses B, C and D?" The assessee is an unregistered firm carrying on the businesses of (1) grocery and rice, (2) money lending, (3) soda factory, (4) rice mill, (5) foreign liquor shops, and (6) motor service. The profits of the last-named, the motor service for the year to which the assessment relates, amounted only to ₹ 253, whereas the firm claimed an allowance of ₹ 10,542 on account of depreciation. Under section 10(2)(vi) of the Act in computing the profits or gains of a business allowance may be made, within certain prescribed limits, in respect of depreciation of buildings, machinery, etc., and the question we have to answer ....

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....any such allowance in any year owing to there being no profits or gains chargeable for that year, or owing to the profits or gains chargeable being less than the allowance, the allowance or part of the allowance to which effect has not been given, as the case may be, shall be added to the amount of the allowance for depreciation for the following year and deemed to be part of that allowance, or if there is no such allowance for that year, be deemed to be the allowance for that year, and so on for succeeding years." Taking the words "Profits or gains chargeable for that year" to refer only to the profits or gains of the business in which the depreciation occurs, it is contended that this proviso allows only one way of treating....

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.... no doubt there may be a business loss of capital as well as of profits. We do not propose to pursue this line of inquiry further, as we have heard nothing in any sense conclusive upon that point. But it may be observed that a close analogy exists between money spent upon repairs to buildings, machinery, etc., and money set apart in respect of depreciation of such things, and that so far as we can discover there is no reason to treat differently the allowances in respect of these two classes of expenditure. We have dealt with the question on the footing that the words "business" and "any business'' occurring in section 10 (1) relate only to the business in which the depreciation occurred-in this case the motor servic....