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2023 (7) TMI 20 - HC - Income TaxCarry forward and set off of unabsorbed depreciation without any limitation of period - carry forward after period of 8 years - HELD THAT:- As the provisions of section 32(2) was introduced by Finance Act, 1998 and further came to be amended by the Finance Act, 2000. The provisions introduced by the Finance Act, 1996 was clarified by the Finance Minister to be applicable with the prospective effect. The court referred to the relevant circular of the Central Board of Direct Taxes and attached purposive and harmonious interpretation keeping in view the purpose of amendment of section 32(2) and held that the assessee becomes entitled to the benefit within the ambit of section in view of the clear language of the section. The questions framed as substantial question of law on the ground of carry forward of unabsorbed depreciation without any limitation period, does not arise as the issue is settled in General Motors India (P) Ltd. [2012 (8) TMI 714 - GUJARAT HIGH COURT] as held that once the Circular No.14 of 2001 clarified that the restriction of 8 years for carry forward and set off of unabsorbed depreciation had been dispensed with, the unabsorbed depreciation from A.Y.1997- 98 upto the A.Y.2001-02 got carried forward to the assessment year 2002-03 and became part thereof, it came to be governed by the provisions of section 32(2) as amended by Finance Act, 2001 and were available for carry forward and set off against the profits and gains of subsequent years, without any limit whatsoever. No substantial question of law.
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