NAYON EXPORTS,MUMBAI vs. ITO WARD 19(2)(4), MUMBAI, PIRAMAL CHAMBER,MUMBAI

ITA 2573/MUM/2026Status: DisposedITAT Mumbai07 August 2026AY 2016-174 pages
AI SummaryAllowed

What were the facts?

The assessee, a partnership firm, sought to set off unabsorbed depreciation of Rs. 4,38,160/- against its income from house property. The Assessing Officer and CIT(A) disallowed this claim, stating unabsorbed depreciation could only be set off against business income.

What did the Tribunal hold?

The Tribunal held that unabsorbed depreciation, when carried forward, merges with current year depreciation and can be set off against any taxable income, including income from house property, as per Section 72(1) of the Income Tax Act. This is supported by Apex Court and co-ordinate bench decisions.

What were the issues?

Whether unabsorbed depreciation carried forward can be set off against income from house property when there is no business income in the current year.

Which sections of the Income-tax Act were involved?

Section 32(2),Section 72(1)

AI-generated summary — verify with the full judgment below

IN THE INCOME TAX APPELLATE TRIBUNAL“J(SMC)” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBERAND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER (Physical hearing) Nayon Exports ITO, Ward – 19(2)(4), Mumbai 623, Parekh Market, J.S.S. Road, vs Piramal Chamber, Parel, Opera House, Mumbai – 400012. Mumbai – 400004. [PAN : AAAFN1173D] Appellant / Assessee Respondent / Revenue Assessee by Shri H.S. Raheja, Advocate Revenue by Shri Adity Rai, Sr. DR Date of hearing 12.05.2026 Date of pronouncement 07.08.2026 Order under section 254(1) of Income Tax Act

PER PAWAN SINGH, JUDICIAL MEMBER:

1.

This appeal by the assessee is directed against the order of ld. CIT(A)/ADDL/JCIT(A), Panaji dated 31.01.2026 for Assessment Year (AY) 2016-17. Though the assessee has raised multiple grounds of appeal, however, the substantial ground of appeal relates to not allowing set off of unabsorbed depreciation of Rs. 4,38,160/- against the income from house property of current year. Rest of the grounds of appeal are narration of facts of argumentative nature.

2.

Rival submissions of both the parties have been heard and record perused. The learned Authorised Representative (ld. AR) of the assessee submits that ass

The order continues below.

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