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“carry forward of depreciation”

DepreciationSection 32(2)Section 32(2)29 judgments

The decision most relied on for carry forward of depreciation is CIT v. Institute of Banking Personnel Selection (264 ITR 110), cited in 398 judgments on BharatTax.

Leading authorities on carry forward of depreciation

CIT v. Institute of Banking Personnel Selection
264 ITR 110 · 2003 · High Court
398
citing judgments

Depreciation is allowable on assets for which the cost has been fully allowed as an application of income under Section 11 in previous years, when computing the income of a charitable trust. Charitable trusts are also entitled to carry forward their deficit.

Velayudhaswamy Spinning Mills (P) Ltd. v. ACIT
340 ITR 477 · 2012 · High Court
213
citing judgments

If unabsorbed depreciation or losses from years prior to the initial assessment year for Section 80-IA claim have already been set off against other income, they cannot be notionally carried forward again to reduce the profits of the eligible unit for computing deduction under Section 80-IA. The notional carry forward provision under Section 80-IA(5) applies only to unabsorbed depreciation or losses that have not yet been absorbed.

Income Tax v. Institute of Banking Personnel Selection (IBPS)
131 Taxmann 386 · 2003 · High Court
188
citing judgments

The Income Tax Act, 1961, does not permit the carry forward of excess expenditure of a charitable trust to be set off against future surpluses, as such trusts are governed by a self-contained code under Sections 11 to 13, not the head 'Profits and Gains of Business'. However, depreciation on fixed assets is allowable to a charitable institution registered under section 12A.

Lissie Medical Institutions v. CIT
348 ITR 344 · 2012 · High Court
164
citing judgments

The Kerala High Court held that charitable institutions claiming exemption under Section 11 are not entitled to claim depreciation on assets used for charitable purposes, taking a view contrary to most other High Courts.

General Motors India (P) Ltd. v. DCIT
354 ITR 244 · 2013 · High Court
141
citing judgments

Unabsorbed depreciation from Assessment Year 1997-98 to 2001-02, carried forward to AY 2002-03, is governed by Section 32(2) as amended by the Finance Act, 2001, allowing its unlimited carry forward and set off against income of subsequent years. Reassessment proceedings under Section 148 challenging such set-off require valid reasons and new tangible material.

CIT v. Himatasingike Seide Ltd.
286 ITR 255 · 2006 · High Court
73
citing judgments

Deduction under Section 10A of the Income-tax Act is to be allowed only after setting off unabsorbed depreciation and brought forward business losses against the profits of the business.

62. Further, in CIT v. Silical Metallurgic Ltd.
324 ITR 29 · 2010 · High Court
37
citing judgments

In a scenario involving amalgamation, the accumulated losses and unabsorbed depreciation of an undertaking can be carried forward by the amalgamating company if it continues the business of the undertaking.

CIT v. Virmani Industries Pvt. Ltd.
216 ITR 607 · 1995 · Supreme Court
29
citing judgments

An assessee is not required to carry on business in the year in which unabsorbed depreciation is sought to be set off, provided the return is filed within the stipulated time. The carry forward of depreciation or investment allowance is permissible even if the business was stopped in the prior year.

Judgments citing carry forward of depreciation

Maya Kumari, Jaipur vs. ITO Ward 2(2), Jaipur

In the result, appeal of the assessee is allowed

ITA 581/JPR/2025[2012-13]Status: DisposedITAT Jaipur03 Nov 2025AY 2012-13
For Appellant: Shri Shrawan Kumar Gupta, AdvFor Respondent: Shri Gautam Singh choudhary, Addl. CIT
Section 147Section 148Section 234ASection 250Section 69

under Section 69A—CIT(A) affirmed view taken by Assessing Officer except for granting partial relief such as with regard to claim for carry forward of depreciation etc—Tribunal after taking note of factual position, more particularly, that addition which was made in reassessment proceedings having been deleted

Katrathal Gram Sewa Sahkari Samiti Limited, Katrathal vs. ITO Ward 1 Sikar, Sikar

The appeal is dismissed

ITA 1001/JPR/2025[2019-20]Status: DisposedITAT Jaipur27 Oct 2025AY 2019-20
For Appellant: Sh. Shrawan Kumar Gupta, AdvFor Respondent: Shri Gautam Singh Choudhary, Addl. CIT
Section 139(1)Section 143(2)Section 144BSection 147Section 147rSection 148Section 148ASection 151Section 234ASection 250

under Section 69А—CIT(A) affirmed view taken by Assessing Officer except for granting partial relief such as with regard to claim for carry forward of depreciation etc—Tribunal after taking note of factual position, more particularly, that addition which was made in reassessment proceedings having been deleted

ACIT Anand Circle, Anand vs. Elecon Engineering Company Ltd, Vallabh Vidyanagar

In the result, appeal filed by the Revenue is dismissed

ITA 2084/AHD/2024[2020-21]Status: DisposedITAT Ahmedabad28 Aug 2025AY 2020-21

Bench: Us.

For Appellant: Smt. Kakoli Uttam Ghosh, Sr. DRFor Respondent: Shri M. K. Patel, Advocate
Section 139(1)Section 139(4)Section 143(1)Section 154Section 250Section 32(2)

impugned year was depreciation loss and not business loss and noting the provisions of Section 32(2) of the Act which allowed carry forward of depreciation loss without requirement of claiming the same in a return filed u/s.139(1) of the Act, he held that there was no mistake apparent ... forward unabsorbed depreciation which can be set off even if the return is filed belated. Accordingly, the order passed u/s.154 to rectify the carry forward unabsorbed depreciation is wrong and bad in law. The contention of the assessee is being ITA No. 2084/Ahd/2024 [ACIT vs. Elecon Engineering Company

Thermo Fisher Scientific India P. Ltd, Mumbai vs. DCIT 15(3)(1), Mumbai

In the result, the appeal by the assessee is partly allowed for statistical

ITA 2458/MUM/2015[2010-11]Status: DisposedITAT Mumbai16 Jul 2025AY 2010-11

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

For Appellant: Shri Dhanesh Bafna, Shri Amol MahajanFor Respondent: Shri Ajay Chandra, CIT-DR
Section 143(3)Section 144CSection 144C(5)Section 32(1)

case (supra) it was held that the section 80 refers to the loss and not for unabsorbed depreciation and, therefore, in respect of carry forward of depreciation, there is no obligation to file return within the time prescribed for the return under section 139(1). This view was reiterated ... permissible when the return is filed within the stipulated time under section 139(1). There is no reference to the provision for carry forward of depreciation or investment allowance in section 80." 11. In the case of CIT v. Virmani Industries (P.) Ltd. [1995] 216 ITR 607 / 83 Taxman

Bakeri Projects Private Limited, Ahmedabad vs. DCIT Circle 1(1)(1), Ahmedabad

In the result, the appeal filed by the assessee is allowed

ITA 954/AHD/2025[2020-21]Status: DisposedITAT Ahmedabad04 Jul 2025AY 2020-21

Bench: S/Shri Sanjay Garg & Makarand V.Mahadeokarasstt.Year : 2020-21 Bakeri Projects Pvt. Lt. The Dcit, Cir.(1)(1) 1St Floor, Sanskrut Vs. Ahmedabad. Old High Court Road Off: Ashram Road Ahmedabad. Pan : Aagcb 1864 L (Applicant) (Responent)

For Appellant: Shri Deepak Shah, AR, and Shri Bharat Shah, ARFor Respondent: Shri R.P. Rastogi, CIT-DR
Section 142(1)Section 143(3)Section 263Section 80I

Rs.48.03 crore as alleged, but only Rs.16.38 crore as was actually allowed by the AO. The assessee further submitted that there was no carry forward of depreciation losses from A.Ys. 2016–17 and 2017–18, and therefore, the PCIT's premise was factually incorrect. ITA No.954 /Ahd/2025 5. Despite this

Rama Shanker Pareek, Jaipur vs. Income Tax Officer, Ward No. 7(2), Jaipur

In the result, appeal of the assessee is allowed

ITA 253/JPR/2025[2010-11]Status: DisposedITAT Jaipur24 Jun 2025AY 2010-11
For Appellant: Shri Shrawan Kumar Gupta, AdvocateFor Respondent: Shri Gautam Singh Choudhary, Addl.CIT
Section 142(1)Section 147Section 148Section 234ASection 250Section 69CSection 80C

assessee under Section 69A-CIT(A) affirmed view taken by Assessing Officer except for granting partial relief such as with regard to carry forward of depreciation etc— Tribunal after taking note of factual position, more particularly, that addition which was made in reassessment proceedings having been deleted

Institute Management Committee Iti Jhalawar, Jhalawar vs. ITO Ward Jhalawar, Jhalawar

The appeals of the assessee are hereby allowed

ITA 41/JPR/2025[2014-15]Status: DisposedITAT Jaipur05 May 2025AY 2014-15

Bench: Moving Towards The Facts Of The Case We Would Like To Mention That The Assessee In This Appeal Has Raised The Following Grounds;

For Appellant: Sh. Shrawan Kumar Gupta, AdvFor Respondent: Sh. Gautam Singh Choudhary, JCIT
Section 10Section 144Section 147Section 151Section 234

under Section 69A—CIT(A) affirmed view taken by Assessing Officer except for granting partial relief such as with regard to claim for carry forward of depreciation etc—Tribunal after taking note of factual position, more particularly, that addition which was made in reassessment proceedings having been deleted

Institute Management Committee Iti Jhalawar, Jhalawar vs. ITO Ward Jhalawar, Jhalawar

The appeals of the assessee are hereby allowed

ITA 39/JPR/2025[2013-14]Status: DisposedITAT Jaipur05 May 2025AY 2013-14

Bench: Moving Towards The Facts Of The Case We Would Like To Mention That The Assessee In This Appeal Has Raised The Following Grounds;

For Appellant: Sh. Shrawan Kumar Gupta, AdvFor Respondent: Sh. Gautam Singh Choudhary, JCIT
Section 10Section 144Section 147Section 151Section 234

under Section 69A—CIT(A) affirmed view taken by Assessing Officer except for granting partial relief such as with regard to claim for carry forward of depreciation etc—Tribunal after taking note of factual position, more particularly, that addition which was made in reassessment proceedings having been deleted

Suvino Televideo, Mumbai vs. ITO Ward 25(1)(3), Mumbai

In the result, appeal filed by the assessee is allowed in the above terms

ITA 2099/MUM/2023[2013-14]Status: DisposedITAT Mumbai18 Feb 2025AY 2013-14

Bench: Ms. Padmavathy S. & Shri. Raj Kumar Chauhan

Section 142(1)Section 143(1)Section 143(2)Section 250Section 32(2)Section 72Section 72(1)Section 72(2)

filing details and submissions. 3. The ld. AO was of the view that the business losses included depreciation u/s.72 of the Act, hence, carry forward of depreciation including business losses can be set off from business income only. It is further stated that in case of assessee there ... Mines (P) Ltd. (59 ITR 555) where it was held that "it is wrong to assume that Section 72 also deals with the carrying forward of depreciation. This carry forward having been provide in Section 32(2) in a different manner, Section 72 deals with losses other than losses

Metsil Exports Pvt. Ltd., Kolkata vs. PCIT, Cen. -2, Kolkata

In the result, the appeal filed by the assessee is allowed

ITA 929/KOL/2024[2019-20]Status: DisposedITAT Kolkata08 Jul 2024AY 2019-20

Bench: Sri Rajpal Yadav, Vice- & Sri Sanjay Awasthi

Section 143(1)Section 143(3)Section 263Section 263(1)Section 79

inquiries or verification which should have been done. On a careful consideration of this issue, it is evident that once the issue of carry forward of depreciation is no longer a debatable matter with the law laid down by the Hon'ble Apex Court (supra), then there would ... considerable quantum of carried forward unabsorbed depreciation to merit a comfortable setting off of the income under consideration. Considering this fact, it is felt that the ld. Pr. CIT giving directions for revision u/s 263 of the Act merely for the sake of Page 7 of 8 I.T.A. No.: 929/KOL/2024

Autograph Cars (India) Private Limited, Bandra East, Mumbai vs. Deputy Commissioner of Income Tax Circle 14(1)(1), Mumbai

In the result, the appeal of the assessee is dismissed

ITA 2942/MUM/2023[2013-14]Status: DisposedITAT Mumbai16 May 2024AY 2013-14

Bench: Shri Anikesh Banerjee & Shri Gagan Goyalm/S. Autograph Cars (India) Pvt. Ltd., Flat No. 2130, Building No. 42, Anand Chs, Gandhi Nagar, Bandra East, Mumbai - 400 051. Pan: Aafca 0420J ...... Appellant Vs. Dy. Commissioner Of Income, Circle-14(1), Aayakar Bhawan, M.K. Road, Mumbai – 400 020. ..... Respondent

For Appellant: Shri Mohammed Obaid Ansari, Ld. ARFor Respondent: Shri Manoj Kumar Sinha, Ld. Sr. DR
Section 250Section 32(2)Section 41(1)Section 80

appeal. 5. The learned Commissioner of Income tax (Appeals) erred in failing to consider and adjudicate the ground of appeal against disallowance of carry forward of depreciation under Section 32(2) Rs. 63,85,255/- notwithstanding the operation of the provisions of Section 80. 6.The learned Commissioner of Income

M/S Autograph Cars (India), Mumbai vs. National Faceless Appeal Centre (NFAC) Income Tax Department, Mumbai

In the result, appeal of the assessee is partly allowed

ITA 2928/MUM/2023[2013-14]Status: DisposedITAT Mumbai05 Jan 2024AY 2013-14

Bench: Shri Vikas Awasthy & Ms. Padmavathy.Sआअसं.2928/मुं/2023 (िन.व. 2013-14) M/S. Autograph Cars (India) Private Limited, C/O. R.K.Khanna & Associates, 402, Regent Chambers, Nariman Point, Mumbai 400 021 Pan: Aafca-0420-J ...... अपीलाथ"/Appellant बनाम Vs. The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre, Deputy Commissioner Of Income Tax, Circle 14(1)(1), Mumbai – 400 020 ..... "ितवादी/Respondent

For Appellant: Shri Raja B. SinghFor Respondent: Shri Manoj Kumar Sinha
Section 32Section 41(1)

unabsorbed depreciation of preceding Assessment Years, the same was disallowed by the Assessing Officer. In the First Appellate proceedings, the CIT(A) allowed carry forward of depreciation but disallowed assessee’s claim of depreciation of current year u/s.32 of the Act stating that the assessee was not carrying ... ground before the CIT(A) assailing disallowance of carry forward of unabsorbed depreciation. The CIT(A) allowed assessee’s 5 claim of carry forward of depreciation u/s. 32(2) of the Act in para 4.4 of the impugned order. Thereafter, the CIT(A) in para-5 of the impugned order

DCIT, Circle-1, Kalyan vs. M/S Asb International Pvt Ltd, Mumbai

In the result the appeal of the revenue stand dismissed

ITA 1541/MUM/2023[2009-10]Status: DisposedITAT Mumbai27 Sept 2023AY 2009-10

Bench: Amarjit Singh & Shri Sandip Singh Karhaildcit, C-1,Kalyan Vs. M/S. Asb International 1St Floor, Mohan Plaza, Pvt. Ltd. Mayale Naar, E9, E44, Addl. Kalyan(W)- 421301 Ambernath, Industrial Area, Anand Nagar, Ambernath Thane-421506 स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Aaaca8424F Appellant .. Respondent C.O. No. 65/Mum/2023 (A.Y. 2009-10)

For Appellant: Shri. Paras SavlaFor Respondent: Shri. Ajay Chandra
Section 10ASection 10BSection 143(3)Section 147Section 250

depreciation and business loss relating to the assessment year 2001-02 onwards. The amendment indicates the legislative intention of providing the benefit of carry forward of depreciation and P a g e | 22 ITA No. 1541/Mum/2023 & CO No. 65/Mum/2023 AY 2009-10 ASSB International Pvt. Ltd. business loss relating ... wherein the Board has stated that the purpose of amendment is to entitle an assessee to the benefit of carry forward of depreciation and loss suffered during the tax holiday period. The circular dated September 5, 2003, reads as under ([2003] 263 ITR (St.) 62, 77): "20. Providing for carry

DCIT, 1(1)(1), Mumbai vs. Cabot India Ltd., Navi Mumbai

In the result ITA number 1911/M/2016 filed by the learned assessing officer for assessment year 2011 – 12 is dismissed

ITA 2595/MUM/2016[2010-11]Status: DisposedITAT Mumbai21 Aug 2023AY 2010-11

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm

For Appellant: Mr. Percy J Pardiwala Sr AdvFor Respondent: Ms. Samruddhi Hande, Sr.AR
Section 143Section 92C

file of the learned assessing officer with a direction to assessee to submit before the learned assessing officer the chart of allowability of carry forward of depreciation and business losses, the learned AO may examine the same and if it is found in accordance with the law, grant same. Accordingly

Cabot India Ltd., Mumbai vs. ACIT 15 (1) (2), Mumbai

In the result ITA number 1911/M/2016 filed by the learned assessing officer for assessment year 2011 – 12 is dismissed

ITA 2586/MUM/2016[2011-12]Status: DisposedITAT Mumbai21 Aug 2023AY 2011-12

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm

For Appellant: Mr. Percy J Pardiwala Sr AdvFor Respondent: Ms. Samruddhi Hande, Sr.AR
Section 143Section 92C

file of the learned assessing officer with a direction to assessee to submit before the learned assessing officer the chart of allowability of carry forward of depreciation and business losses, the learned AO may examine the same and if it is found in accordance with the law, grant same. Accordingly

Cabot India Ltd., Mumbai vs. DCIT 1(1), Mumbai

In the result ITA number 1911/M/2016 filed by the learned assessing officer for assessment year 2011 – 12 is dismissed

ITA 2108/MUM/2016[2010-11]Status: DisposedITAT Mumbai21 Aug 2023AY 2010-11

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm

For Appellant: Mr. Percy J Pardiwala Sr AdvFor Respondent: Ms. Samruddhi Hande, Sr.AR
Section 143Section 92C

file of the learned assessing officer with a direction to assessee to submit before the learned assessing officer the chart of allowability of carry forward of depreciation and business losses, the learned AO may examine the same and if it is found in accordance with the law, grant same. Accordingly

Asst CIT 15(1)(2), Mumbai vs. Cabot India Ltd, Navi Mumbai

In the result ITA number 1911/M/2016 filed by the learned assessing officer for assessment year 2011 – 12 is dismissed

ITA 1911/MUM/2016[2011-12]Status: DisposedITAT Mumbai21 Aug 2023AY 2011-12

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm

For Appellant: Mr. Percy J Pardiwala Sr AdvFor Respondent: Ms. Samruddhi Hande, Sr.AR
Section 143Section 92C

file of the learned assessing officer with a direction to assessee to submit before the learned assessing officer the chart of allowability of carry forward of depreciation and business losses, the learned AO may examine the same and if it is found in accordance with the law, grant same. Accordingly

Cabot India Ltd, Mumbai vs. DCIT 1(1), Mumbai

In the result ITA number 1911/M/2016 filed by the learned assessing officer for assessment year 2011 – 12 is dismissed

ITA 1842/MUM/2016[2006-07]Status: DisposedITAT Mumbai21 Aug 2023AY 2006-07

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm

For Appellant: Mr. Percy J Pardiwala Sr AdvFor Respondent: Ms. Samruddhi Hande, Sr.AR
Section 143Section 92C

file of the learned assessing officer with a direction to assessee to submit before the learned assessing officer the chart of allowability of carry forward of depreciation and business losses, the learned AO may examine the same and if it is found in accordance with the law, grant same. Accordingly

Cabot India Ltd, Mumbai vs. DCIT 1(1), Mumbai

In the result ITA number 1911/M/2016 filed by the learned assessing officer for assessment year 2011 – 12 is dismissed

ITA 6318/MUM/2014[2009-10]Status: DisposedITAT Mumbai21 Aug 2023AY 2009-10

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm

For Appellant: Mr. Percy J Pardiwala Sr AdvFor Respondent: Ms. Samruddhi Hande, Sr.AR
Section 143Section 92C

file of the learned assessing officer with a direction to assessee to submit before the learned assessing officer the chart of allowability of carry forward of depreciation and business losses, the learned AO may examine the same and if it is found in accordance with the law, grant same. Accordingly

Cabot India Ltd, Mumbai vs. DCIT 1(1), Mumbai

In the result ITA number 1911/M/2016 filed by the learned assessing officer for assessment year 2011 – 12 is dismissed

ITA 2539/MUM/2014[2007-08]Status: DisposedITAT Mumbai21 Aug 2023AY 2007-08

Bench: Shri Prashant Maharishi, Am & Shri Rahul Chaudhary, Jm

For Appellant: Mr. Percy J Pardiwala Sr AdvFor Respondent: Ms. Samruddhi Hande, Sr.AR
Section 143Section 92C

file of the learned assessing officer with a direction to assessee to submit before the learned assessing officer the chart of allowability of carry forward of depreciation and business losses, the learned AO may examine the same and if it is found in accordance with the law, grant same. Accordingly