TaxTMI 
TaxTMI 
2024 (10) TMI 367
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....ssment year 2023 - 2024, the petitioner filed its return of income, which was processed under Section 143 (1) of the 1961 Act. Ext.P2 is the intimation received by the petitioner. 2. According to the petitioner, though it had claimed a carry forward loss of Rs. 1,14,60,832/-, only an amount of Rs. 21,71, 999/- was allowed, as can be seen from Ext.P2. It is submitted that the amount of Rs. 1,14,60,832/- forms part of unabsorbed depreciation, as can be seen from the Annexure forming part of Ext.P2. The petitioner filed an application for rectification under Section 154 of the 1961 Act, claiming that full set off of the unabsorbed depreciation had to be granted and the denial of that benefit to the petitioner is illegal. The petition filed ....
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...., the same can be set off even against income arising from heads other than 'profits or gains of business or profession'. It is submitted that the denial of such set off cannot be sustained and therefore Ext.P6 order under Section 154 of the 1961 Act is liable to be set aside and the matter is to be remitted for fresh consideration of the Assessing Authority. 5. Sri. Jose Joseph, the learned Senior Standing Counsel appearing for the Income Tax Department, would submit that Section 32 of the 1961 Act forms part of the provisions that deal with the computation of income from profits and gains of business or profession. It is submitted that though the provisions of sub-section (2) of Section 32 of the 1961 Act permit the carry forward of su....
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....ions 30 to 43D". 8. Section 32 of the 1961 Act, which deals with depreciation, thus forms part of the provisions for computation of income from profits and gains of business or profession. Sub-section (2) of Section 32 of the 1961 Act reads thus: "32. Depreciation.- (1) xxxx xxxx xxxx (2) Where, in the assessment of the assessee, full effect cannot be given to any allowance under subsection (1) in any previous year, owing to there being no profits or gains chargeable for that previous year, or owing to the profits or gains chargeable being less than the allowance, then subject to the provisions of subsection (2) of section 72 and sub-section (3) of section 73, the allowance or the part of the allowance....
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....sment year and so on: Provided that where the whole or any part of such loss is sustained in any such business as is referred to in section 33B which is discontinued in the circumstances specified in that section, and, thereafter, at any time before the expiry of the period of three years referred to in that section, such business is re-established, reconstructed or revived by the assessee, so much of the loss as is attributable to such business shall be carried forward to the assessment year relevant to the previous year in which the business is so re-established, reconstructed or revived, and- (a) it shall be set off against the profits and gains, if any, of that business or any other business carried on by him and asses....