COMMISSIONER OF INCOME TAX U.P., LUCKNOW vs J.K. HOSIERY FACTORY, KANPUR

The Supreme Court held that under Sections 10(2)(vi), 24(1), and 24(2) of the Income Tax Act, 1922, an unregistered firm is entitled to carry forward unabsorbed depreciation to a subsequent year when it becomes registered. The Court emphasized that the identity of the firm remains intact despite the change in registration status, and thus, the firm can claim the benefit of depreciation. The appeal by the Revenue was dismissed, affirming the High Court's decision in favor of the assessee.