The Department preferred further appeals to the Appellate Tribunal and relying upon the decision of the Calcutta High Court in.
The facts giving rise to the above question in the civil appeals are these.
At the end of assessment year 1950 51 there was an unabsorbed business loss of Rs.
67534/ and unabsorbed depreciation of Rs.
1, 85,670/ .
50,624/ in 1951 52 and Rs.
19652/ Rs.
7516/ was ordered to be carried forward with the result that the total unabsorbed depreciation carried forward amounted to Rs.
64,232/ the net income of Rs.
44580/ was set off against the income of Rs.
1,78, 154/ .
Aggrieved by the ITOs refusal to give preference in the matter of set off to the earlier carried forward business loss before deducting the current years depreciation, the assessee preferred appeals for both the years and the AAC accepted the assessees companytention and directed that unabsorbed carried forward business loss should be set off first in each year before deducting the current years depreciation.
Both the unabsorbed amounts Rs.
The companycerned assessment years are 1951 52 and 1952 53.
1,85,670/ and Rs.
47,832/ were directed to be carried forward.
The assessees income without taking into account the current depreciation was Rs.
It was further directed that the entire unabsorbed loss amounting to Rs.
D. Tulzapurkar, J In these appeals and the tax reference the companymon question arising for determination relates to the priority between current depreciation and unabsorbed carried forward business loss that is to say which should be deducted first while companyputing the total income of an assessee for the companycerned assessment year.
