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2020 (9) TMI 198 - AT - Income TaxRectification of mistake u/s 154 - unabsorbed depreciation - HELD THAT:- Hon’ble Gujarat High Court in General Motors India P.Ltd. Vs. DCIT [2012 (8) TMI 714 - GUJARAT HIGH COURT] has held that any unabsorbed depreciation available to an assessee as on 01-04-2002, namely, A.Y. 2002-03, will be dealt with in accordance with the provisions of section 32(2) as amended by the Finance Act, 2001 and not by the provisions of section 32(2) as stood amended. That is how, the Hon’ble Gujarat High Court decided the issue in favour of the assessee. That being the position, no rectification u/s. 154 could have been done qua the unabsorbed depreciation pertaining to the A.Yrs. 1997-98 and 1998-99. Set off of brought forward losses, which was set off by the assessee and rectified by the AO in his order u/s.154 - AO categorically observed that as per records there was no brought forward loss available for set off against the current year’s income. Such a finding has not been controverted by the assessee either before the ld. CIT(A) or the Tribunal. In fact, the ld. AR candidly admitted the stand point of the Revenue on this score - amount of set off of brought forward loss claimed by the assessee in its return which was wrongfully allowed in the original assessment, was not admissible and has rightly been rectified u/s.154 of the Act. - Decided partly in favour of assessee.
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