SREE KUMAR TEXTILES PRIVATE LIMITED,INDUSTRIAL ESTATE, MADURAI vs. ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE, MADURAI, INCOME TAX OFFICE, MADURAI

ITA 3437/CHNY/2025Status: DisposedITAT Chennai09 September 2026AY 2011-201212 pages
AI SummaryPartly Allowed

What were the facts?

The assessee company did not file its return of income for AY 2011-12. The Assessing Officer (AO) made additions for cash credits, rental income, and capital gains. The assessee claimed set-off of unabsorbed depreciation, which was denied by the AO and CIT(A).

What did the Tribunal hold?

The Tribunal held that unabsorbed depreciation is governed by Section 32(2) and can be set off against income from other heads, irrespective of whether business was carried on or returns were filed for intervening years. The addition of Rs. 21,00,000 was deleted, while the addition of Rs. 16,10,000 was sustained.

What were the issues?

Whether unabsorbed depreciation can be set off against income from other heads when business is discontinued, and whether cash credits are unexplained.

Which sections of the Income-tax Act were involved?

Section 32(2),Section 68,Section 72,Section 143(3),Section 147,Section 144,Section 264

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: SHRI ABY T VARKEY & SHRI S. R. RAGHUNATHA

For Respondent: Ms. Anshu Sharawat, Addl.CIT
Hearing: 28.07Pronounced: 09.09.2026

PER S. R. RAGHUNATHA, AM : The present appeal has been preferred by the Assessee against the order dated 12.11.2025 passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter referred to as “the Ld. CIT(A)”], arising from the assessment order dated 31.03.2022 passed by the Assistant Commissioner of Income-tax, Corporate Circle, Madurai [here

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 32(2)

All 315 judgments and leading authorities on Section 32(2) →

Recent GST High Court judgments

Search GST case law →