P.B. Mukharji, J. - (1.) In this Reference the only point which this Court has to answer is as follows: Whether, on the facts and in the circumstances of the case, unabsorbed depreciation of the past years should be added to the depreciation of the current year and the aggregate of the unabsorbed depreciation and the current year's depreciation be deducted from the income of the previous year from other heads relevant for the assessment year 1960 -61.
(2.) The facts of the case are simple and short. The Assessee is a non -resident company doing business in India. Its income from business was computed at Rs. 3,13,435 and from interest on securities at Rs. 460 and from other sources at Rs. 71,146. There were brought forward losses from earlier years which were set off against the business income. The result was that such income was determined at nil. The Assessee also brought forward unabsorbed depreciation from earlier years which the Assessee claimed a set off against its income earned from other sources.
(3.) The Income -tax Officer rejected the. Assessee's claim and the sum of Rs. 71,606 representing income from interest on securities and income from other sources was brought to tax. The Appellate Assistant Commissioner disagreed with the view taken by the Income -tax Officer and came to the conclusion that the unabsorbed depreciation brought forward from the earlier years had to be set off against the income from interest on securities and also against income from other sources.;