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2017 (7) TMI 1407 - AT - Income TaxDisallowance of set off of unabsorbed depreciation pertaining to the earlier year - HELD THAT:- Hon’ble Gujarat High Court in the case of General Motor (India) Pvt. Ltd. [2012 (8) TMI 714 - GUJARAT HIGH COURT] as held that after the amendment made vide the Finance Act, 2001, the balance of unabsorbed depreciation revived back into life and became eligible for carry forward and set off along with other parts of unabsorbed depreciation available to the credit of the assessee. This issue is thus squarely thus covered in favour of the assessee by the said decision of Hon’ble Gujarat High Court and in the absence of any contrary decision, brought to our notice that the learned DR which is in favour of the revenue on this issue, we respectfully follow the same and uphold the impugned order of the Ld. CIT(A) allowing the claim of the assessee for set off of unabsorbed depreciation pertaining to A.Y. 1997-08 to 2000-01. Disallowance of provisions made for non-moving/obsolete stock and spares - HELD THAT:- Altogether new stand was taken by the assessee before the Ld. CIT(A) that the provision for non-moving/obsolete stock and spares to the extent of ₹ 2,80,01,392/- actually pertained to the difference in physical and book stock as found on physical verification - As submitted that this new stand taken by the assessee for the first time before him however, was accepted by the Ld. CIT(A) without giving any opportunity to the AO to verify the same and this position clearly evident from the impugned order of the Ld. CIT(A) is not disputed even by the learned counsel for the assessee. We, therefore, consider it fair and proper and in the interest of justice to set aside the impugned order of the Ld. CIT(A) and on this issue the matter to the file of the AO for deciding the same afresh after verifying the stand of the assessee that the provision for non-moving/obsolete stock and spares actually was on account of difference in physical and book stock as found on physical verification. Ground No. 2 and 3 of the revenue’s appeal are accordingly treated as allowed as statistical purposes.
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