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2017 (3) TMI 1607 - HC - Income TaxSet off of unabsorbed depreciation - whether to be dealt with in accordance with the provisions of Section 32(2) of the Income Tax Act as amended by Finance (No.1) Act, 2001 and not by the provisions of Section 32(2) as it stood before the said amendment? - Held that:- The issue arising in the present appeal stands concluded against the Revenue and in favour of the respondent-assessee by the order of this Court [2016 (7) TMI 1245 - BOMBAY HIGH COURT] as held that the unabsorbed depreciation for the Assessment Year 1997-98 upto Assessment Year 2001-02 could be allowed to be set off, if it was still unabsorbed on 1st April, 2001. CBDT circular No.14 of 2001 dated 22nd November, 2001 hold that any unabsorbed depreciation which is available on 1st day of April, 2001 would be dealt with in accordance with the provisions of Section 32(2) of the Act as amended by the Finance Act of 2001. Moreover, the Circular No.14 of 2001 issued by the CBDT clarifies that restriction of eight years to carry forward and set off the unabsorbed depreciation has been dispensed with. Consequently, unabsorbed depreciation for the intervening periods between assessment 1997-98 upto 2001-02, if available in the assessment year 2002-03 would be allowable as part of carried forward depreciation from Assessment Year 2002-03 onwards. - Decided in favour of assessee.
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