TMI Blog2013 (5) TMI 866X X X X Extracts X X X X X X X X Extracts X X X X ..... : This appeal by the assessee-company is directed against the order passed by learned Commissioner of Income Tax u/s. 263 of the Act. The assessee has raised 4 grounds in its grounds of appeal. 2. Vide ground No. 1 it contends that the order passed by the Assessing Officer is neither erroneous nor prejudicial to the interest of revenue and hence learned Commissioner of Income Tax is not justified in invoking provisions of section 263 of the Act. 3. Vide ground No. 2 the assessee contends that consequent to the amendment by the Finance Act 2001, the assessee is entitled to claim set off of unabsorbed depreciation relating to A.Ys. 1995-96, 1998-99, 2000-01 2001- 02. In the event of not accepting the aforementioned claim the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee would be entitled to claim set off of unabsorbed depreciation allowance pertaining to A.Y. 1995-96 onwards against income, if any, of the current year. He further submitted that the ITAT Special Bench, Mumbai in the case of DCIT Vs. Times Guranty Ltd. (2010) 131 TTJ 257 (Mum)(SB) was of the opinion that depreciation pertaining to A.Y. 1997-98 to 2001-02 cannot be carried forward beyond 8 years as the law stood at that point of time but subsequent to the aforementioned Judgement Hon'ble Gujarat High Court had taken a view that intention of the Legislature was to allow unabsorbed depreciation allowance for an indefinite period of time since it was for enabling the industry to conserve sufficient funds to replace plant and machinery a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preciation pertaining to A.Y. 1995-96 onwards. In the result, ground No. 2 urged by the assessee is decided in favour of the assessee. 8. It may be stated here that in order to consider the issue on merits it may be noticed that only in the event of holding that the proceedings initiated by learned Commissioner of Income Tax u/s. 263 are in accordance with law, other issues can be decided on merit and, since we have decided ground No. 2 on merits, as has been agreed by learned counsel for the assessee, Ground No.1 is deemed to have been decided against the assessee and in favour of the revenue. Ground No. 3 4 are academic in nature, since they are to be considered only in the event of holding that the assessee is not entitled to carry fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
