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TMI Blog2006 (5) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... ent proceedings." "3. That the worthy CIT(A)-II, Ludhiana has also erred in confirming under mentioned additions made by the Assessing Officer : 1.Rs. 84,321;On account of electricity charges 2.Rs. 20,695;On account of car maintenance depreciation and insurance 3.Rs. 2,000;On account of telephone expenses". "4. That the Ld. CIT(A)-II Ludhiana has erred in confirming the order of the Assessing Officer in not allowing benefit of unabsorbed depreciation and other business losses as claimed in the return of income for the earlier years." "5. That the disallowance of losses, brought forwarded depreciation loss and business loss of earlier years should have been allowed as claimed in the return of income." "6. That interest under section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rongly supported the orders of authorities below and stated that telephone was installed at the residence of the partner, so, it was not used for the business purposes, therefore, disallowance was rightly made. 10. After considering the rival submissions and the material available on record, it is noticed that the disallowance had been made only for this reason that the telephone was installed at the residence of the partner. It is true that the personal use of a telephone installed at the residence of the partner, cannot be ruled out. At the same time, it can also be not denied that the telephone could not be used for business purposes. In our opinion, disallowance made by the Assessing Officer and confirmed by the Ld. CIT(A) to the exten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f filing of return of those years and there was nothing in the various sections of the Income-tax Act i.e., section 72 or section 80 or section 139(3) to suggest that in case of carried forward of losses, the return for all the subsequent assessment years should be filed in time to claim the benefit of set off. Thus, carried forward and set off of business losses in respect of those assessment years should be allowed whose return had been filed in time and similarly carried forward and set off of unabsorbed depreciation was governed by section 32(2) and that the section 80 and not govern the set off and carried forward of unabsorbed depreciation. Therefore, unabsorbed depreciation could be carried forward and set off even if the return was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions ld. D.R. for the revenue strongly supported the orders of authorities below. 17. After considering the rival submissions and the material available on record, it is noticed that the benefit to adjust forward loss and depreciation had not been allowed to the assessee on the basis that the returns filed were not in time. In other words, the returns were belated. During the course of hearing ld. D.R. for the revenue could not controvert this contention of the ld. Counsel for the assessee that the return for assessment year 1997-98 was filed within time allowable under section 139(1) of the Income-tax Act and the depreciation along with business losses were allowed by the Assessing Officer to be carried forward for succeeding years ..... X X X X Extracts X X X X X X X X Extracts X X X X
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