The assessee filed an application for rectification under section 154, claiming that full set off of the unabsorbed depreciation had to be granted and the denial of that benefit to the assessee was illegal. The petition filed by the assessee was rejected finding no ground for rectification. On writ  the assessee contended that a reading of section 72 would indicate that where such loss in the form of depreciation was carried forward to the next year, the same could be set off even against income arising from heads other than‘profits or gains of business or profession. Dismissing the paetition the court held that  the right under section 32(2) is specifically made subject to the provisions of sections 72(2) and 72(3). It is clear from the reading of the provisions of section 72 that even if the depreciation allowance under section 32, which was carried forward in terms of sub-section (2) of section 32, is deemed to be a business loss for the purposes of sections 71 and 72, it can be set off only against profits or gains of any business or profession and it cannot be set off against income from any other sources. Though the petitioner took considerable efforts to establish that section 72 is always subject to the provisions of section 71 going by the express provisions in sub-section (2) of section 32 permitting the carry forward of depreciation allowance subject to the provisions of section 72, there is no merit in the said contention taken by the petitioner. Writ petition. is dismissed.(AY. 2023-24)(SJ)