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2020 (2) TMI 614 - AT - Income TaxSet off of unabsorbed business/depreciation loss - carried forward and set off only up to 8 subsequent assessment years - HELD THAT:- Amendment relied upon by Ld.AO has been substituted by Finance Act 2001 w.e.f. 01/04/02, wherein new subsection (2) of section 32 reinstated the provisions, as it stood in assessment year 1996-97. It has been observed that restrictions imposed by Finance Act (No.2) Act, 1996 in the matter of set off of unabsorbed depreciation has been dispensed with and original provision has been restored. Reliance is also been placed on the decision of on coordinate bench of this Tribunal in case of as Gran it private limited vs ITO [2013 (1) TMI 998 - ITAT BANGALORE] for assessment year 2005-06 and 2006-07, wherein this tribunal relied upon decision of jurisdictional High Court in case of Karnataka Co-Operative Milk Producers Federation Ltd vs DCIT [2011 (2) TMI 1465 - KARNATAKA HIGH COURT] and various other decisions as has been placed in the paper book filed before us wherein it was held that where ever unabsorbed depreciation was not allowed to be set off against the profit arising after the period of 8 years should be a game considered to be set off after amendment. It was observed that when quantum of unabsorbed depreciation is computed after the amendment, whatever balance of unabsorbed depreciation is available to the credit of assessee must be determined as unabsorbed depreciation eligible for carry forward and set off. Hon’ble Court held that the interregnum restriction of limiting claim of eight-year period does not take away right of an assessee to claim balance of unabsorbed depreciation forever. Thus the legislature has resorted to original provisions by amendment brought in by Finance Act 2001, thereby resorting to old position, which allows set off of unabsorbed depreciation and restrictive period of 8 years for claiming set off has been deleted, thereby extending the benefit against profit and gains of subsequent years without any bar. - Decided against revenue
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