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2008 (12) TMI 239 - ITAT CHANDIGARH-AUnabsorbed Depreciation - set off - whether the law applicable to carry forward and set off of unabsorbed depreciation in the assessment years 1997-98 to 2001-02 would continue to govern such carry forward unabsorbed depreciation even after substituting of the provision in the assessment year 2002-03 - HELD THAT:- In our view assessee cannot be put to disadvantage of carry forward and set off of unabsorbed depreciation against other income which was available to him up to assessment year 1996-97. Moreover from the speech of the Finance Minister it had become amply clear that the intention of the Legislature was that depreciation prior to assessment year 1996-97 can still be set off against any other income for the eight assessment years. Therefore, issue has to be understood under the scheme of the Income-tax Act which was available up to assessment year 1996-97 and provisions for 1997-98 and provisions for assessment year 2002-03. Our view are also fortified by the judgment of the Hon'ble Supreme Court in the case of K.P. Varghese v. CIT [1981 (9) TMI 1 - SUPREME COURT] wherein it has been observed by the Supreme Court that clarification made before the Parliament has to be taken as correct interpretation of law. Finance Minister's speech could be noticed upon for throwing light on the objects and purposes of provisions. Even otherwise when Assessing Officer apply the provisions applicable for assessment year 1997-98 to assessee's case in the relevant assessment year even after its substitution, it will be fair also to apply the provisions, which existed up to assessment year 1996-97 since unabsorbed depreciation pertained to the assessment year 1996-97 and before in view of the intention of Legislature. Therefore, in our considered view as per the various provisions of law relating to carry forward depreciation and speech of the Finance Minister in the Parliament we have no hesitation in upholding the order of the CIT (A) to set off against other income but in view of the fact that by virtue of provisions effective from assessment year 1997-98, assessee is entitled to carry forward only up to 8 assessment years. In this case unabsorbed depreciation up to assessment year 1996-97 has become current depreciation of assessment year 1997-98 which shall be available for set off for eight years in view of the above discussions. Relevant assessment year 2002-03, falls within a period of 8 years, hence, unabsorbed depreciation up to assessment year 1998-99 shall be set off against other income of assessee in the relevant year. In the result we dismiss the appeal of the revenue.
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