Commissioner of Income Tax vs Hydrazines and Allied Chemicals

N.K. Agrawal, J.—The following question of law has been referred to this court u/s 256(1) of the Income Tax Act, 1961 :

Assessment year 1983-84 :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee, a registered firm is entitled to carry forward unabsorbed depreciation from earlier years and the benefits of unabsorbed depreciation for the purpose of set off in the subsequent years has to go to the firm itself and not to the partners ?"

A similar question was examined by this court in Pearl Woollen Mills Vs. Commissioner of Income Tax, and Commissioner of Income Tax Vs. Mahavir Steel Rolling Mills, . The view expressed by this court stands affirmed by the Supreme Court in M/s. Garden Silk Weaving Factory, Surat Vs. The Commissioner of Income Tax, Gujarat, Ahmedabad, .

This reference is, therefore, disposed of with answer to the question in the affirmative, i.e., against the Department of Revenue and in favour of the assessee.