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2015 (8) TMI 307 - AT - Income TaxRevision proceedings u/s. 263 - the assessee had claimed set off of carried forward un-absorbed depreciation relating to assessment year 1999-2000 against the income in the financial year 2007-08, which was not allowable as the same had to be dealt with in line with the provisions of section 32(2) of the Act, applicable to the said year - Held that:- Applying the ratio laid down by the Hon’ble Gujarat High Court in General Motors India Pvt. Ltd. Vs. DCIT (2012 (8) TMI 714 - GUJARAT HIGH COURT ) to the facts of the present case, the issue of allowability of unabsorbed depreciation relating assessment year 1999-2000 against the income arising in assessment year 2008-09 is to be set off and consequently, the order passed by the Assessing Officer in this regard cannot be said to be prejudicial to the interest of Revenue. Consequently, the revisionary powers exercised by the Commissioner against the order of assessment which is not prejudicial to the interest of Revenue, even where the order passed by the Assessing Officer was erroneous, cannot be exercised, since the twin conditions have not been fulfilled in the case. In view thereof, we reverse the directions of the Commissioner in this regard and uphold the order of Assessing Officer in allowing the set off of unabsorbed depreciation relating to assessment year 1999-2000 amounting to ₹ 5,41,84,430/- claimed against the business income for assessment year 2008-09 in computation of income. The directions of the Commissioner in this regard are thus, reversed and the order of Assessing Officer is restored. We find merit in the alternate plea raised by the assessee that in view of the information being available on record though in the proceedings under section 154 of the Act, the Commissioner could not exercise the jurisdiction under section 263 of the Act. We set-aside the order of Commissioner on this ground also. - Decided in favour of assessee. Proceedings under section 263 in relation to the management / license fees paid - The said issue was restored back to the file of Assessing Officer to decide the same after verifying the submissions of the assessee and due verification of the books of account and other details - The learned Authorized Representative for the assessee pointed out that in the set-aside proceedings, the Assessing Officer had allowed the claim of the assessee in the order passed under section 143(3) r.w.s. 263 of the Act and no addition has been made on this account. In view of the order of Assessing Officer in allowing the claim of assessee in set-aside proceedings and passing the order under section 143(3) r.w.s. 263 of the Act, the issue raised in the present appeal against the exercise of jurisdiction of Commissioner under section 263 of the Act has become infructuous and the same is dismissed. - Decided in favour of assessee.
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