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2021 (12) TMI 28 - HC - Income TaxRevision u/s 263 by CIT - excess carry forwarded of unabsorbed depreciation and set off after a period of eight years - whether the exercise of power by the Commissioner of Income Tax under Section 263 was valid and proper? - whether in allowing excess carry forwarded of unabsorbed depreciation and set off after a period of eight years in view of the amended Section 32 (2) of the Act is justified? - HELD THAT:- Tribunal considered the said issue and, in our opinion, rightly held that for invocation of the power under Section 263 of the Act two conditions have to be specified simultaneously, namely, the order sought to be revised should be shown to be erroneous and it should be prejudicial to the interest of the revenue. In this regard the Tribunal followed the decision of the Hon'ble Supreme Court in the case of Malabar Industrial Co. Ltd. vs. Commissioner of Income-tax[2000 (2) TMI 10 - SUPREME COURT]. We find that there is no error in the manner the Tribunal has decided this issue and we affirm the view taken by the Tribunal. On the merits of the matter it appears to us that as to whether in allowing excess carry forwarded of unabsorbed depreciation and set off after a period of eight years in view of the amended Section 32 (2) of the Act is justified, the said issue is no longer res integra. We find that there is no error in the order passed by the Tribunal. Accordingly, the appeal fails and the same stands dismissed. The substantial questions of law are answered against the revenue.
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