C.I.T. - III Kolkata v. India Steamship Co. Ltd
[Citation -2015-LL-0218-26]

Citation 2015-LL-0218-26
Appellant Name C.I.T. - III Kolkata
Respondent Name India Steamship Co. Ltd.
Court HIGH COURT OF CALCUTTA
Relevant Act Income-tax
Date of Order 18/02/2015
Judgment View Judgment
Keyword Tags profits and gains of business or profession • carried forward depreciation • unabsorbed depreciation • house property • letting out • plant
Bot Summary: Mr.Bhowmik submitted that though three questions were formulated, the only question that needs to be answered is question no.1 which reads as follows : 2 Whether on the facts and in the circumstances of the case the Income- Tax Appellate Tribunal was justified in law in confirming the order of the Commissioner of Income Tax and in holding that unabsorbed depreciation brought forward from earlier years upto the assessment years 1996-97 can be set off against the income under the head House property and other sources as the business income after adjustment was determined at nil The question nos.2 and 3 are related to question no.1 only. He added that the question no.1 is covered by the judgement of this Court in the case of C.I.T. v. Premchand Jute Mills Ltd reported in 164 ITR 288 wherein the following view has been taken : It is not disputed that in the earlier years, depreciation was suffered by the assets involved, namely, the jute mill, and that such depreciation remained unabsorbed. The assessee was entitled to carry forward the said unabsorbed depreciation under section 32(2) without any reference to section 57. In the assessment years involved, the assessee earned income from letting out machinery and plant which was not chargeable to income-tax under the head Profits and gains of business or profession but was chargeable under the head Income from other sources. The assessee is entitled to deduction in respect of expenditure and 3 depreciation in accordance with section 32(2). The specific mention of section 32(2) in section 57, in our view, permits deduction of the unabsorbed carried forward depreciation of earlier years from the income received from plant, machinery or furniture let out. Considering the above submissions, the question no.1 is answered in the affirmative and against the revenue.


ORDER SHEET ITA 47 OF 2004 IN HIGH COURT AT CALCUTTA Special Jurisdiction (Income Tax) ORIGINAL SIDE C.I.T. III, KOLKATA Versus INDIA STEAMSHIP CO. LTD. BEFORE: Hon'ble JUSTICE GIRISH CHANDRA GUPTA Hon'ble JUSTICE ARINDAM SINHA Date : 18th February, 2015. For Appellant/Revenue : Mr.P.K.Bhowmik,Advocate Court : appeal was admitted on 5th October, 2004 but notice of appeal has not been served. This Court gave opportunity on 27th January, 2015 for service on terms and conditions contained therein. Even that opportunity was not availed of. Mr.Bhowmik, however, submitted that though three questions were formulated, only question that needs to be answered is question no.1 which reads as follows : 2 Whether on facts and in circumstances of case Income- Tax Appellate Tribunal was justified in law in confirming order of Commissioner of Income Tax (Appeals) and in holding that unabsorbed depreciation brought forward from earlier years upto assessment years 1996-97 can be set off against income under head House property and other sources as business income after adjustment was determined at nil ? question nos.2 and 3 are related to question no.1 only. He added that question no.1 is covered by judgement of this Court in case of C.I.T. v. Premchand Jute Mills Ltd reported in (1987) 164 ITR 288 wherein following view has been taken : It is not disputed that in earlier years, depreciation was suffered by assets involved, namely, jute mill, and that such depreciation remained unabsorbed. assessee was entitled to carry forward said unabsorbed depreciation under section 32(2) without any reference to section 57. In assessment years involved, assessee earned income from letting out machinery and plant which was not chargeable to income-tax under head Profits and gains of business or profession but was chargeable under head Income from other sources . From such income, assessee is entitled to deduction in respect of expenditure and 3 depreciation in accordance with section 32(2). specific mention of section 32(2) in section 57, in our view, permits deduction of unabsorbed carried forward depreciation of earlier years from income received from plant, machinery or furniture let out. There is no bar or limitation in section 57(ii). Considering above submissions, question no.1 is answered in affirmative and against revenue. appeal is, thus, disposed of. returned envelope containing date 11th July, 2014 be kept on record. (GIRISH CHANDRA GUPTA, J.) (ARINDAM SINHA, J.) ssaha AR(CR) C.I.T. - III Kolkata v. India Steamship Co. Ltd
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