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2011 (2) TMI 1465 - HC - Income TaxBenefit of carrying forward the depreciation u/s 32(2) denied - Petitioner contends, the unabsorbed depreciation for the year 1993-94 is thus, according to s. 32(2) of the Act and had been carried forward while filing assessment for the subsequent years - scope of amendment introduced - HELD THAT:- The order passed at Annex. Q by the CIT that the unabsorbed depreciation incurred for the asst. yr. 1993-94 gets lapsed on 31st March, 2002. The said order has affected the petitioner, since according to the petitioner, prior to the amendment introduced during 1996-97, it was permissible to carry forward the unabsorbed depreciation and from 1993-94 to 1996-97, the unabsorbed depreciation has been carried forward. The amendment introduced limiting the time for carrying forward for a period of eight years has to be reckoned not from 1993-94 but from 1996-97 and the same was carried forward and by the year 2006-07 since again there is an amendment introduced during 2002 making this period of eight years as unlimited, from 2002 onwards even till 2006-07, it is permissible to carry forward the unabsorbed depreciation in view of the change in position of law. This aspect has not been considered by the revisional authority as such, the impugned order passed at Annex. Q is without taking into consideration the provisions under s. 32(2) of the Act which came to be introduced limiting/extending the period from eight years for an unlimited period. Further, carrying forward of unabsorbed depreciation for every year has to be calculated individually based on the audit report and to arrive at the exact amount to be carried forward. The impugned order at Annex. Q and also the order of the assessing authority at Annex. J in not taking into consideration the legal position as to carrying forward the unabsorbed depreciation require interference and reconsideration - Matter is remitted to the 1st respondent for reconsideration in accordance with law taking into consideration the provisions provided under the IT Act regarding allowing of depreciation and also carrying forward the claim of depreciation, to arrive at a conclusion on such carrying forward of the depreciation as to what would be the remaining amount to be determined for the purpose of payment of tax. Petition allowed in part.
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