1999 (4) TMI 64

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....reciation of the earlier years carried forward for the purpose of being set off against profit and gains of subsequent years. The ITO has disallowed the claim of the assessee on the ground that since the assessee had no profits or gains chargeable under the head "Income from business" but had his taxable income from other sources, the carry forward unabsorbed depreciation was (sic-not) liable to be set off. That order was not (sic) ultimately affirmed by the Tribunal holding that the assessee was not entitled to set off on depreciation because it has ceased to carry on business. 2. At the instance of the company (in liquidation) in IT Ref. 251 of 1984 for the assessment period 1978-79 to 1980-81 following question of law has been referre....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....der all the heads of income specified in s. 14." 5. The Court reiterated the view expressed in Rajapalayam Mills Ltd. vs. CIT 1978 CTR (SC) 167: (1978) 115 ITR 777 (SC) : TC 25R.837 and CIT vs. Jaipuria China Clay Mines (P) Ltd. (1966) 59 ITR 555 (SC): TC 27R. 625 : "Now, it is well-settled, as a result of the decisions of this Court that the words " no profits or gains chargeable for that year' are not confined to profits and gains derived from the business whose income is being computed under s. 10, but they refer to the totality of the profits or gains computed under the various heads and chargeable to tax." 6. As to the necessity of carrying on the business activity in the succeeding year as a condition for the carried forward ....