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2015 (8) TMI 374 - AT - Income TaxProceedings u/s 154 - AO disallowed the brought forward of unabsorbed depreciation allowance - CIT(A) directed the AO to allow the assessee's claim of adjusting unabsorbed depreciation for the AY 1999-2000 from the house property income - Held that:- Any unabsorbed depreciation available to an assessee on 1st day of April 2002 (A.Y. 2002-03) will be dealt with in accordance with the provisions of section 32(2) as amended by Finance Act, 2001. And once the Circular No.14 of 2001 clarified that the restriction of 8 years for carry forward and set off of unabsorbed depreciation had been dispensed with, the unabsorbed depreciation from A.Y.1997-98 upto the A.Y.2001-02 got carried forward to the assessment year 2002-03 and became part thereof, it came to be governed by the provisions of section 32(2) as amended by Finance Act, 2001 and were available for carry forward and set off against the profits and gains of subsequent years, without any limit whatsoever. Thus, the finding of the Ld. CIT(A) is based on the decision of Hon'ble Gujarat High Court in the case of General Motors India P. Ltd (2012 (8) TMI 714 - GUJARAT HIGH COURT), and no contrary decision of any other High Court has been brought to our notice, hence such a finding of the CIT(A) is upheld. Further, as held by the High Court the unabsorbed depreciation becomes the current year depreciation, which can very well be set off against any source under any of the other heads of income during that year. - Decided against revenue. Disallowance of business loss - CIT(A) deleted disallowance - Held that:- As the provisions of the Act the assessee can set of business loss within eight years. As this business loss is within eight years, the appellant is eligible for the set off of the business loss - no infirmity in such an order of Ld. CIT(A). Even from the computation of income it is seen that under the head "profits and gains of business or profession", assessee has claimed brought forward business losses of AY 2004-05. The ground raised by the revenue that it has been claimed against "Income from House Property" is misconceived. - Decided against revenue.
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