Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (9) TMI 336 - HC - Income TaxReview u/s 263 - incorrect allowance of set off of unabsorbed depreciation - as per CIT(A) incorrect allowance of set off of unabsorbed depreciation by AO and permitting the carry forward of depreciation allowance relating to A.Ys. 1997-98 and 1998-99 beyond the stipulated quarantine period of eight years and setting off the same against the income of A.Y. 2007-08 is unsustainable in law - Tribunal quashing the order u/s.263 holding that the review of assessment was merely on change of opinion - Held that:- It is required to be noted that at the relevant time, when the learned ITAT passed the impugned judgment and order, there was direct decision of jurisdictional High Court rendered in the case of General Motors India (P) Ltd Vs. Deputy Commissioner of Income Tax (2012 (8) TMI 714 - GUJARAT HIGH COURT) wherein 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, thus 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, which was binding to the learned ITAT. Under the circumstances, it cannot be said that the learned ITAT has committed any error and/or illegality and following binding decision of this Court in the case of General Motors India (P) Ltd Vs. Deputy Commissioner of Income Tax (supra) in passing the impugned judgment and order. - Decided in favour of assessee.
|