1989 (2) TMI 58

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....MITAL J.-The assessee-firm was assessed as an unregistered firm for the assessment year 1971-72. Unabsorbed depreciation of over a lakh of rupees remained after the aforesaid assessment. For the assessment year 1972-73, the assessee-firm was registered. When the case relating to the assessment year 1973-74 was taken up, the assessee wanted to set off the unabsorbed depreciation relating to the ass....

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....nt year 1973-74 and to carry over the unabsorbed depreciation left after such set off to the year succeeding the assessment year 1973-74 ? On behalf of the assessee, reliance has been placed on the following decisions to answer the question in its favour. CIT v. J. Patel and Co. [1984] 149 ITR 682 (Delhi) ; CIT v. Nagpur Gas and Domestic Appliances [1984] 147 ITR 440 (Bom) ; CIT v. Singh Tra....

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.... were obiter. After considering the matter, we are of the opinion that the relevant observations in the earlier decisions of the Delhi High Court were obiter. However, the remaining three decisions of the High Courts relied upon by the Revenue do support their view point. In these circumstances, it has to be seen as to which view is the correct one. After going through the provisions contained ....