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2016 (12) TMI 1243 - AT - Income TaxRevision u/s 263 - set off of the unabsorbed depreciation - Held that:- It is not in dispute that the assessment order passed by the Assessing Officer on 29.03.2014. Subsequently, the application u/s.154 of the Act filed in which the claim of the assessee regarding set off of the unabsorbed depreciation of ₹ 18,16,28,888/- was allowed. However, this order is erroneous and prejudicial in the interest of the revenue is not understoodable. Firstly this claim was declined by the Assessing Officer by virtue of order dated 29.03.2014. Subsequently, the same was allowed by the Assessing Officer on application u/s.154 of the Act moved by the assessee. This claim has also not been wrongly allowed by the Assessing Officer. The issue regarding set off of unabsorbed depreciation against the addition made u/s.68 of the Act has rightly been allowed by the Assessing Officer, in view of the law settled in CIT vs. Virmani Industries Pvt. Ltd. (1995 (10) TMI 1 - SUPREME Court ). Thus when the claim has been justifiably allowed by the Assessing Officer then the same cannot be treated as a ground to invoked the provision u/s.263 of the Act because the order is not erroneous and prejudicial in the interest of revenue. - Decided in favour of assessee
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