9911796707
TMI Blog1972 (10) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... KANTAWALA. JUDGMENT The judgment of the court was delivered by KANTAWALA J.-By this reference under section 66(1) of the Indian Income-tax Act, 1922, the question that is referred for our determination is as under : " Whether, on the facts and in the circumstances of the case unabsorbed depreciation allowance of the previous years deemed to be part of depreciation allowance of the current year under proviso (b) to section 10(2)(vi) of the Act can be set off against income under other heads? " The assessee is a public limited company and the question referred to us relates to the assessment year 1961-62, the relevant previous year the financial year ending March 31, 1961. The income of the assessee from business under section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Ltd. The Tribunal took the view that, in view of the said decision, the claim made by the assessee was justified and it directed that the set-off of the portion of the unabsorbed depreciation should be allowed against the interest on securities and capital gains. Mr. Joshi, on behalf of the revenue, has fairly conceded that the question involved in this reference is not only concluded by the decision of this court in the case of Ravi Industries Ltd. but it is concluded by the decision of the Supreme Court in Commissioner of Income-tax v. Jaipuria China Clay Mines (P.) Ltd. As the ratio of the decision of the Supreme Court directly applies to the facts of the present case, further controversy between the parties does not arise. In the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 559 it is observed apart from authority, looking at the Act as it stood on April 1, 1952, it is clear that the underlying idea of the Act is to assess the total income of an assessee. Prima facie, it would be unfair to compute the total income of an assessee carrying on business without pooling the income from business with the income or loss under other heads. The second consideration which is relevant is that the Act draws no express distinction between the various allowances mentioned in section 10(2). They all have to be deducted from the gross profits and gains of a business. According to commercial principles, depreciation would be shown in the accounts and the profit and loss account would reflect the depreciation accounted for in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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