1995 (1) TMI 24

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....tion 256(1) of the Income-tax Act, 1961, for the opinion of this court : " Whether, on the facts and in the circumstances of the case and on a correct interpretation of the provisions of sub-section (2) of section 32 of the Income-tax Act, 1961, the Tribunal was justified in holding that the unabsorbed depreciation of a registered firm which could not be set off fully in the assessments of partne....

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....Income-tax (Appeals) to the effect that the Assessing Officer erred in allocating the unabsorbed depreciation to the partners instead of carrying it forward for the purpose of setting off against the future profits of the firm. The Commissioner of Income-tax (Appeals) turned down the contention of the assessee. Therefore, the assessee took up the matter before the Appellate Tribunal. The Appellate....

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....forward by the firm which is the assessee referred to in the sub-section.... This construction is also strengthened by the last part of the sub-section. When it talks of the depreciation allowance carried forward being added to the allowance for depreciation for the following previous year, it obviously refers to the depreciation allowance due to the assessee (that is, the firm) in the subsequent ....