2013 (8) TMI 1149 - AT - Income Tax

Summary

Issues involved: Appeal against order of ld. CIT(A)-VIII, Chennai regarding carried forward business loss, set off of unabsorbed depreciation, and disallowance of claim for depreciation.

Carried Forward Business Loss: Assessee appealed for correction of carried forward business loss amount. Assessing Officer directed to verify and adopt correct figure of carried forward business loss, allowing the appeal for statistical purposes.

Set Off of Unabsorbed Depreciation: Assessee claimed set off of unabsorbed depreciation against income from house property. Ld. CIT(A) erred in not allowing the set off. Assessee relied on Supreme Court decision and amendment to section 32(2) by Finance Act, 2001. Tribunal held in favor of assessee based on the decision of Hon'ble Gujarat High Court, allowing set off against income under any head without limit.

Disallowance of Claim for Depreciation: Disallowance of claim for depreciation of &8377; 1,81,174/- upheld as income from rent is chargeable under 'income from house property' and depreciation cannot be claimed against the same property.

Conclusion: Tribunal partly allowed the appeal, directing correction of carried forward business loss and allowing set off of unabsorbed depreciation against income under any head. Dismissed the claim for depreciation against rental income. The order was pronounced on August 5, 2013, at Chennai.