C.S.P.SINGH, J. - (1.) THE Tribunal has referred the following question for our opinion :- "Whether on the facts and circumstances of the case the Tribunal was correct in upholding the order of the AAC to the effect that the assessee was entitled to set off business loss, without taking into consideration the current depreciation and development rebate ?"
(2.) THE assessee is manufacturer of cotton textile and for the asst. yr. 1971-72 it was assessed at an income of Rs. 5,80,879/- by an order dated 22nd Feb., 1974. While making the assessment the ITO directed that this income should be set off against the past losses. An appeal was filed by the assessee and it was urged that the business income should have been first readjusted against previous year's business loss after taking into consideration the current depreciation and development rebate. This contention found favour with the appellate authority in view of the decision of this Court in the case of Mother India Refrigeration Co., (P) Ltd. vs. CIT (1971) 80 ITR 510 (All). The Tribunal dismissed the appeal filed by the Department following the aforesaid decision of this Court. The decision in Mother India Refrigeration Co. (P) Ltd. (supra)squarely covers the point, but counsel for the Department urged that the view requires reconsideration on account of the decision of the Gujarat High Court in the case of CIT vs. Gujarat State Warehousing Corporation {(1976) CTR (Guj) 306 : (1976) 104 ITR 1)}and the decision of the Andhra Pradesh High Court in the case of Addl. CIT Tax vs. Andhra Factories Ltd (1979) 117 ITR 555 (AP) . The two decisions referred to by counsel for the Department run counter to the view taken by this Court but as at present advised we are of the same view as was taken in Mother India Refrigeration Co., (P) Ltd (supra). We accordingly answer the question in the affirmative, in favour of assessee and against the Department. As none has appeared on behalf of the assessee there shall be no order a to costs.;