9911796707
TMI Blog1999 (4) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... 977-78 to 1980-81. The assessee-company was in liquidation. During the winding up proceedings, it had income by way of interest accruals. As the company had discontinued its business it was liable to be assessed under the head "Income from other sources'. The company also had unabsorbed depreciation of the earlier years carried forward for the purpose of being set off against profit and gains of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rbed depreciation allowance carried forward from earlier years could not be allowed against the income from other sources unless the assessee had income falling under s. 28 of the IT Act, 1961?" 3. In IT Ref. 252 of 1984 relating to asst. yr. 1977-78 following question of law has been referred at the instance of CIT : "Whether, on the facts and circumstances of the case, the Tribunal was right ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chargeable under s. 28. But this Court has repeatedly held that the said expression is not so confined and that it refers to income under all the heads of income specified in s. 14." 5. The Court reiterated the view expressed in Rajapalayam Mills Ltd. vs. CIT 1978 CTR (SC) 167: (1978) 115 ITR 777 (SC) : TC 25R.837 and CIT vs. Jaipuria China Clay Mines (P) Ltd. (1966) 59 ITR 555 (SC): TC 27R. 62 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on business, that is some or other business, to avail of the benefit of the said sub-section ? Two views are possible in this behalf, viz. (1) since the sub-section speaks of unabsorbed depreciation being carried forward to the next year and 'added to the amount of the allowance for depreciation for the following previous year and deemed to be part of that allowance" the sub-section necessarily co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervations from both the judgments hereinabove, which say that the unabsorbed depreciation allowance has not only to be set off against other heads of income in the relevant previous year but where it is carried forward, it stands on exactly the same footing as the current depreciation." 7. In view of the aforesaid, we answer the question referred to us in negative, that is to say, in favour of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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