TMI Blog2015 (7) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, 1997, that could be included in the income of the assessee. Also see GENERAL MOTORS INDIA PVT. LTD Versus DEPUTY COMMISSIONER OF INCOME-TAX [2012 (8) TMI 714 - GUJARAT HIGH COURT ] -Decided in favour of assessee. - I.T.A.No.2468/Mds. /2014 - - - Dated:- 10-7-2015 - SHRI N.R.S.GANESAN AND SHRI A.MOHAN ALANKAMONY, JJ. For The Appellant : Mr.B.Nischal, JCIT, D.R For The Respondent : Mr.R.Vijayaraghavan,Advocate ORDER PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: This appeal is filed by the Revenue, aggrieved by the order of the Learned Commissioner of Income Tax(A)-I, Coimbatore dated 04.07.2014 in ITA No.140/13-14 passed under Sec.143(3) read with section 250 of the Act. 2. The Revenue has raised four elabora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prevails on the 1st day of April of the relevant assessment year as per the provisions of section 32(2) prevailing as on the 1st day of the assessment year under appeal wherein the assessment of the assessee, full effect cannot be given to the provisions of section 32(2) . As seen from the provisions, it is very clear that the carry forward allowance shall be added to the amount of allowance for depreciation for the following previous year and deemed to be part of that allowance, or if there is no allowance for that previous year but deemed to be allowance for that previous year, and to on for the succeeding previous years. It is very clear that there is no restriction for carrying forward the unabsorbed depreciation and setting it off aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against profits and gains of any other business of the same assessment year. When the depreciation allowance of a business of the assessment year is not absorbed by any other business of the same assessment year, then the remaining unabsorbed depreciation allowance could be set off against the income under any other head that is assessable for the same assessment year. In the event of depreciation allowance of the year is unable to be absorbed by any other business income or from income under any other head in the same assessment year, the remaining unabsorbed depreciation allowance shall be carried forward to the following year and (a) unabsorbed allowance shall be set off against the profits and gains of any business carried by a person, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance, if any, of the assessment year 1996-97 shall be added to the amount of the allowance for depreciation of the assessment year 1997-98 and deemed to be part of the allowance for this year. In other words, the unabsorbed depreciation allowance of the assessment year 1996-97 shall be added to the allowance of 1997-98 and will be deemed to be the allowance of that year. The limitation of eight years shall start from the assessment year 1997-98. 6. In view of the above position of law, we are of the view that the Tribunal has rightly come to the conclusion that the assessee is entitled to the unabsorbed depreciation brought forward as on April 1, 1997, and could be set off against the business profits and in order to give effect to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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