S.S Sodhi, J.:— The matter here concerns the carrying forward of unabsorbed depreciation. In this context, the question referred for the opinion of this court reads as under:
“Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that unabsorbed depreciation of earlier years amounting to Rs. 86,059 is to be carried forward and set off in the hands of and against the income of the assessee, a registered firm, and not that of its partners in the subsequent years?”
2. A similar point arose before this court in Income-tax Reference No. 107 of 1979 (Pearl Woollen Mills v. Commissioner Of Income-Tax., [1989] 179 ITR 368 (P&H)), decided on February 1, 1989, and this decision clearly covers the issue raised and in terms thereof, this reference is consequently answered in the affirmative, in favour of the assessee and against the Revenue.
3. There will, however, be no order as to costs.