HOTEL AYODHYA,KOLHAPUR vs. INCOME TAX OFFICER, KOLHAPUR

ITA 150/PUN/2025Status: DisposedITAT Pune27 March 2025Bench: SHRI MANISH BORAD (Accountant Member), SHRI S. S. VISWANETHRA RAVI (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that brought forward unabsorbed depreciation needs to be added to the current year's depreciation, and once it takes the character of current year depreciation, it becomes eligible for set-off against income from other sources as per Section 72(1) of the Act.

What were the facts?

The assessee, a partnership firm, had business losses and unabsorbed depreciation from previous assessment years (2018-19 and 2019-20). For AY 2021-22, the assessee had income from other sources and claimed set-off of brought forward unabsorbed depreciation against this income.

What were the issues?

Whether brought forward unabsorbed depreciation can be set-off against income from other sources.

Which sections of the Income-tax Act were involved?

Section 72(1),Section 32(2)

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Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE

Before: SHRI MANISH BORAD & SHRI S. S. VISWANETHRA RAVI

For Appellant: Shri Pramod S. Shingte
For Respondent: Shri Manoj Tripathi
Hearing: 19.03.2025Pronounced: 27.03.2025

PER MANISH BORAD, AM: This appeal filed at the instance of assessee is directed against the order of Ld. Addl./JCIT(A)-3, Hyderabad [‘Ld. CIT(A)’] dated 15.01.2025 which is arising out of intimation u/s 143(1)(a) of the Act for Assessment Year 2021-22 framed on 16.11.2022 by the ADIT, CPC, Bengaluru.

2.

The only grievance of the assessee is that Ld. CIT(A) erred in confirming the action of CPC, Bengaluru of not allowing set-off of 2 brought forward unabsorbed depreciation against the income from other sources.

3.

Facts in brief are that the assessee is a partnership firm having income from business. Return of income for assessment year 2021- 22 furnished on 18.01.20

The order continues below.

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