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TMI Blog2008 (2) TMI 901X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to as the 'Act'). 2. The rival contentions in this regard have been very carefully considered. The order of assessment as framed by the Assessing Officer shows that for the assessment year under appeal, the computation is based on total income of the assessee from business to which certain accrued loosed on account of contracts have been added and deduction u/s/.80HHE of the Act has been allowed resulting in a positive income. The computation of income does not show any adjustment on account of set off of brought forward losses, unabsorbed depreciation etc., Thus, it is clear that there was no carry forward of bright forward losses or unabsorbed depreciation requiring adjustment against the current year's income. Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch loss relates to the business of the undertaking, shall be carried forward or set off where such loss relates to any of the relevant assessment years ending before the 1st day of April, 2001; (iii) no deduction shall be allowed under section 80HH or section 80HHA or section 80-I or section 80-IA or section 80-IB in relation to the profits and gains of the undertaking; and (iv) In computing the depreciation allowance under section 32, the written down value of any asset used for the purpose of the business of the undertaking shall be computed as if the assessee had claimed and been actually allowed the deduction in respect of depreciating for each of the relevant assessment year. A careful reading of the said section shows that f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ajapalayam Mills Ltd., v. CIT (1978) 115 ITR 777 was confronted with the situation of claim of exemption by an undertaking with regard to the profits of the current year. For the year when the claim was made by the assessee, the undertaking did not have any unabsorbed depreciation or development rebate to be adjusted against its total income for the year. In other words, the assessee had only profits of the undertaking for the current year. The Supreme Court noted that the unabsorbed depreciation and development rebate of the earlier years were adjusted against the income of the undertaking for the earlier years and thus, for the assessment year under appeal, there was no amount available as unabsorbed depreciation and development rebate. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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