Set off of Depreciation Cannot be Against ‘Income From Any Other Sources’: Kerala HC Dismisses Writ Petitions of Alapatt Jewellers [Read Order]
The single bench has observed that even if the depreciation allowance under Section 32 of the Income Tax 1961 Act, which was carried forward in terms of sub-section (2) of Section 32, is deemed to be a business loss for the purposes of Sections 71 and 72, it can be set off only against profits or gains of any business or profession and it cannot be set off against income from any other sources
In the case of Alapatt Jewellers, the Kerala High Court has held that depreciation can only be set off against ‘profits or gains’ and not against ‘income from any other sources’.The court dismissed the writ petition and upheld the order. The petitioner/assessee filed its return of income, which was processed under Section 143(1) of the…
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