1994 (3) TMI 7

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... omputed the current profit at Rs. 4,32,364 and the current depreciation at Rs. 9,64,029 leading to a net loss of Rs. 5,31,665. The contention of the assessee was that since there was carried forward loss, if depreciation is not allowed as a deduction, then the carried forward loss could be set off against the current profit and the current depreciation could be carried forward without limitation, unlike business loss, for which there is a period of limitation for set-off. That was the reason why the assessee had filed a revised return withdrawing the claim for deduction of depreciation. The Income-tax Officer rejected that claim following the decision of this court in Addl. CIT v. Andhra Printers Ltd. [1979] 117 ITR 555. On appeal, the Comm .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e need not be given if particulars are not furnished as required by section 34 of the Income-tax Act and, therefore, the assessee had an option not to claim depreciation. It is argued that this view was not shared by the Madras High Court in Dasaprakash Bottling Co. v. CIT [1980] 122 ITR 9 where it was held that the Income-tax Officer had a duty to allow depreciation when the particulars were available. None appeared for the respon dent although notice was duly served. According to learned counsel for the Revenue, even the statutory provisions relating to assessment require that the particulars of depreciation had to be given and the deduction of depreciation allowance was necessary in making the assessment. We have gone through the decis .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... requires that the income from a business has to be computed in accordance with the provisions of sections 29 to 44, and read with section 145, that depreciation is a proper deduction in arriving at the correct income from business. No doubt, section 34 provides that the deduction shall be allowed only if the prescribed particulars are furnished. This only ensures that correct information is available to the Income-tax Officer for allowing the proper deduction. But this cannot be construed to mean that where the assessee deliberately withholds the information, no deduction for depreciation could be given in computing the income. In the present case, the motivation for the assessee to withdraw the claim for deduction of depreciation is only t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X