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2016 (3) TMI 532 - AT - Income TaxRevision u/s 263 - CIT(A) held that limitation of 8 years for carry forward and set off would no longer apply to the unabsorbed depreciation that arose during A.Y. 1997-98 to 2001-02 - Held that:- As decided in assessee's own case relating to assessment year 2007-08 the AO has simply followed the order of his predecessor giving effect to the quantum of brought forward loss to be set off from the income of the current year. Therefore, the order for the impugned assessment year cannot be said to be erroneous although it may be prejudicial to the interest of the revenue. It has been held in various judicial decisions that for assuming jurisdiction u/s.263 by the Ld.CIT, the twin conditions, i.e. (a) order is erroneous and (b) order is prejudicial to the interest of the Revenue must be satisfied. In the instant case, since the unabsorbed business loss and unabsorbed depreciation loss which has to be carried forward for subsequent years has been quantified in the order passed u/s.143(3) dated 31-12-2008 for A.Y. 2006-07 and since the AO has simply followed that order while giving set off of unabsorbed depreciation loss for the A.Y. 2007-08, therefore, the order in our opinion cannot be said to be erroneous. Therefore, the twin conditions are not satisfied. Under these circumstances, we are of the considered opinion that it is not a fit case for assuming jurisdiction u/s.263 of the I.T. Act. We accordingly cancel the order passed u/s.263. - Decided in favour of assessee
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