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TMI Blog2005 (3) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... view of the provisions of section 80 – revenue’s submission is misconceived - Section 80 confines itself to the losses mentioned in subsection (1) of section 72 or sub-section (2) of section 73 or sub-section (1) or sub-section (3) of section 74 or sub-section (3) of section 74A. It does not talk about the unabsorbed depreciation which is allowed to be carried forward under sub-section (2) of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 1986-87. The respondent-assessee is an individual. He had filed return of income showing loss of Rs. 2,75,850. While completing the assessment, the Assessing Officer observed that the loss for the earlier year could not be allowed to be carried forward and set off as per the provisions of section 80 of the Act and he, accordingly, completed the assessment on a total income of Rs. 21,740. Fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 72, 73, 74 or 74A of the Income-tax Act. Section 72 deals with carry forward of unabsorbed business loss other than losses on account of depreciation has been specifically provided for in section 32(2). The manner of carry forward in the two provisions is different. Unabsorbed depreciation is carried forward and added to the depreciation of the following year. The total amount of de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not at all applicable to unabsorbed depreciation for which provision is separately made under section 32(2). The provisions contained under section 32(2) does not confine the benefit of carry forward of unabsorbed depreciation only to cases where a return is filed under section 139(1) or within such time as may be allowed by the Income-tax Officer. I am, therefore, of the opinion that the Depu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 74A. It does not talk about the unabsorbed depreciation which is allowed to be carried forward under sub-section (2) of section 32 of the Act. Thus, the respondent was entitled for carry forward unabsorbed depreciation under section 32(2) of the Act notwithstanding the fact that the losses had not been determined. Accordingly, We answer the question referred to us in the affirmative i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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