1996 (4) TMI 18

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.... Department, the Tribunal referred the following question for the opinion of this court under section 256(1) of the Income-tax Act, 1961 : "Whether, in the case of the partner of a firm which had become defunct, the Appellate Tribunal is correct in coming to the conclusion that the unabsorbed depreciation relating to the defunct firm which had closed its business in the assessment year 1978-79 ....

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....ar under consideration. The Income-tax Officer negatived the assessee's claim on the ground that as the business of Sri Abirami Cotton Mills in which the loss was incurred had been closed down, the carried forward loss could not be set off. On appeal, the assessee contended that as he was a partner in a number of firms, the business of these firms formed one business and so long as one of those....

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....ani Industries (P.) Ltd. [1974] 97 ITR 461 (All) and CIT v. Estate and Finance Ltd. [1978] 111 ITR 119 (Bom) cited supra. Consequently, the Appellate Assistant Commissioner directed the Income-tax Officer to set off the unabsorbed depreciation against the profits of the assessment year 1979-80. On appeal by the Revenue, the Tribunal upheld the order of the Appellate Assistant Commissioner allowing....