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2022 (12) TMI 840 - ITAT CHENNAIRevision u/s 263 by CIT - Unabsorbed Depreciation or unabsorbed Business Loss - The limitation for carrying forward of business loss do not apply to carrying forward the unabsorbed Depreciation - HELD THAT:- Once the AO has considered the issue and has accepted the explanation of the assessee, then there is no scope for the PCIT to take up said issue for revision proceedings on the guise of inadequate enquiry. We further noted that the PCIT may assume jurisdiction to revise assessment order, in a case, where there is no enquiry at all. However, he does not have power to revise the assessment order, in a case, where enquiry has been made and according to the PCIT, enquiry is inadequate and this principle is supported by the decision of CIT v. Gabriel India Ltd. [1993 (4) TMI 55 - BOMBAY HIGH COURT] As regards unabsorbed depreciation to be carry forward to subsequent years, the PCIT was of the opinion that although, the assessee has furnished return of income for the AYs 2012-13 to 2014-15 beyond due date specified u/s.139(1) of the Act, but the AO has allowed to carry forward unabsorbed depreciation. We find that once again the reasons given by the PCIT to revise the assessment order on this issue is devoid of merits for simple reason that the issue before the AO is AY 2015-16 and for this assessment year, the assessee has returned ‘nil’ total income. Even, assuming for a moment, the PCIT is right on his observation, but fact remains that brought forward unabsorbed depreciation can very well be examined by the AO when the assessee has claimed set off of unabsorbed depreciation against current year income in subsequent assessment years. Since, there is no positive income for the impugned assessment year and the assessee has not claimed set off of unabsorbed depreciation there is no prejudice is caused to the Revenue for the impugned assessment year and thus, the question of revision of assessment order on this issue does not arise. PCIT is erred in revising the assessment order passed by the AO u/s.143(3) - order passed by the PCIT u/s.263 quashed - Decided in favour of assessee.
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