During the course of the assessment proceedings it was observed by the A.O that the 'business income' of Rs. 17,96,914/- shown by the assessee in its return of income was 'set off' by the assessee against the brought forward 'business losses' of the earlier years. Also, it was observed by him that the assessee had 'set off' its entire 'Income from house property' of Rs. 2,15,72,559/- and 'Income from other sources' of Rs. 5,66,579/- against the brought forward 'unabsorbed depreciation' of the earlier years. The A.O held a conviction that as the assessee had admittedly discontinued its business activities in A.Y. 2010-11, therefore, it was not entitled to claim 'set off' of losses of earlier years against its income for the current year.