| Case ID |
2b9be065-1ae8-479c-a031-62b06ef8f4e0 |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
In this case, the Delhi High Court examined the legality of the Tribunal's decision to allow the set-off of unabsorbed depreciation against the income from other sources when the business had been discontinued. The court held that the question posed was indeed a referable question of law, thereby directing the Tribunal to state the case and refer the issue to the court. The ruling emphasized the importance of adhering to established precedents, notably the decision in the case of East Asiatic Co. (India) P. Ltd. v. CIT. The final decision favored the Revenue, affirming the Tribunal's order. |
| Summary |
This case revolves around the interpretation of Section 32 in conjunction with Section 256 of the Income-tax Act, 1961 regarding the treatment of unabsorbed depreciation. The Delhi High Court was tasked with determining whether the Tribunal was justified in allowing the set-off of unabsorbed depreciation against income from other sources when the business operations had ceased. The court referenced the precedent set by East Asiatic Co. (India) P. Ltd. v. CIT, underscoring the significance of legal consistency in tax matters. The ruling ultimately supported the Revenue's stance, clarifying the legal framework surrounding depreciation claims for discontinued businesses. This case is pivotal for tax professionals and businesses navigating the complexities of depreciation allowances under the Income-tax Act, 1961. |
| Court |
Delhi High Court
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| Entities Involved |
Commissioner of Income Tax,
Premier Cushions P. Ltd.
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| Judges |
B.N. Kirpal,
C.L. Chaudhry
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| Lawyers |
B. Gupta,
R.K. Chaufla,
R.C. Pandey,
B.B. Ahuja
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| Petitioners |
Commissioner of Income Tax
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| Respondents |
Premier Cushions P. Ltd.
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| Citations |
1990 SLD 2100,
(1990) 185 ITR 280
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| Other Citations |
East Asiatic Co. (India) (P.) Ltd. v. CIT [1986] 161 ITR 135 (Mad.)
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
32,
256
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