JAGATJIT INDUSTRIES LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE are 12 references made by the Income-tax Appellate Tribunal Delhi Bench-D, Delhi, under s. 256(1) of the Income-tax Act 1961 (for short 'the Act'), at the instance of the assessee and the Revenue. In respect of asst. yrs. 1960-61. 1962-63 to 1966-67, the following questions have been referred for our opinion :

(2.) THE first two questions have been referred at the instance of the assessee whereas the third question has been referred at the instance of the Revenue.

(3.) INSOFAR as the third question is concerned, the issue sought to be raised by the Revenue stands answered by the Supreme Court in CIT vs. Virmani Industries (P) Ltd. & Ors. (1995) 129 CTR (SC) 189 : (1995) 216 ITR 607 (SC) : TC S27.2831, wherein it has been held that for the purpose of carry forward and set off of unabsorbed depreciation it is not necessary that business in respect of which depreciation was granted should be carried on in the following year. As a matter of fact it has also been observed that even the assets which earned depreciation need not exist in the following year. In view of the said decision, the third question is answered in the affirmative, i.e., in favour of the assessee and against the Revenue. There will be no order as to costs.