2010 (12) TMI 1167 - AT - Income Tax

Summary

Issues involved: Appeal against the order of CIT(A) regarding re-opening of assessment and claim of set off of depreciation against salary income.

Re-opening of assessment:
The appeal was filed challenging the re-opening of assessment without fresh material, contending it was bad in law. The Departmental Representative cited a Supreme Court decision, leading to the Tribunal finding the re-opening valid as the assessment was not completed, only processed u/s 143(1).

Claim of set off of depreciation against salary income:
The assessee claimed set off of depreciation from salary income, arguing it was not u/s 71(2A) but u/s 32 itself. The Departmental Representative supported the denial of benefit u/s 71(2A), stating sec. 32(2) only allowed carry forward of depreciation. The Tribunal referred to a Supreme Court decision distinguishing business loss from unabsorbed depreciation, allowing set off against salary income u/s 32(2) despite the introduction of sec. 71(2A), emphasizing the wording of sec. 32(2) and granting partial relief to the assessee.

The Tribunal pronounced the order on 10/12/2010.