9911796707
Advanced Search 
TMI Blog2015 (7) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... eal; however, the crux of the issue is that the Revenue is aggrieved by the order of the Ld. CIT (A), who had allowed unabsorbed depreciation pertaining to A.Y 1999-2000 to be adjusted against Long Term Capital Gain of this relevant assessment year. 3. The brief facts of the case are that the assessee company is engaged in the business of manufacture of cotton yarns, filed its return of income on 26.09.2010 admitting its income as Rs. 3,60,71,261/-. Subsequently, the case was taken up for scrutiny and the assessment was completed u/s.143(3) of the Act wherein the Ld. A.O did not allow to carry forward the unabsorbed depreciation of the assessment years 1999-00 to 2000-01 in the relevant assessment year on the ground that the amendments mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TCG as claimed by the assessee. As submitted by the appellant the judicial decisions also support the assessee's view. Hence, the Assessing Officer is directed to allow the setting off of the carry forward of depreciation against the LTCG. The grounds of appeal are allowed." 4. Ld. A.R. argued in support of the order of the Ld. CIT (A) and also placed reliance in the decision rendered by the Jurisdictional High Court in the case of CIT Vs. Pioneer Asia Packing P. Ltd., reported in [2009] 310 ITR 198 (Mad.) and Hon'ble Gujarat High Court in the case of General Motors India P. Ltd. Vs. DCIT reported in [2013] 354 ITR 244(Guj.). Ld. D.R could not controvert to the submissions of the Ld. A.R. 5. We have heard both the parties and carefully p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance cannot be wholly set off so, it shall be allowed to be carried forward for the following eight assessment years immediately succeeding the assessment year in which it was first computed. The proviso provides that the business to which depreciation allowance is related to must be carried on in the succeeding year so as to allow such set off. Thus, by the amendment, the deeming fiction of treating the earlier years' unabsorbed depreciation as the current year depreciation was removed. The period available for absorbing the unabsorbed depreciation against the profit of the succeeding years was limited to eight years. The clarification of the Finance Minister in Parliament is also to the effect that inasmuch as the cumulated unabsorbed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the Assessing Officer for verification as to how much depreciation was available up to April 1, 1997, that could be included in the income of the assessee." (b) General Motors India P. Ltd. Vs. DCIT "Even on the merits the provisions of section 32(2), as amended by the Finance Act, 2001, would allow the unabsorbed depreciation allowance available in the assessment years 1997-98, 1999-2000, 2000-01 and 2001-02 to be carried forward to the succeeding years and if any unabsorbed depreciation or part thereof could not be set off till the assessment year 2002-03 then it would be carried forward till the time it is set off against the profits and gains of subsequent years." Since in the give case before us, the issue is with respect t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
