TMI Blog2011 (2) TMI 1465X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. 1993-94 on 29th Oct., 1993 but, had failed to enclose the audited balance sheet along with the return of income since the statutory auditors who were to audit the books of the petitioner under s. 63 of the Karnataka Co-operative Societies Act, 1959 had not completed the audit work. The 1st respondent issued the notice dt. 29th Oct., 1993 calling upon the petitioner to rectify the defects. Explaining the details, regarding not securing the audit report, stating that it is not a willful non-compliance, petitioner moved the 1st respondent. The 1st respondent rejected the claim of the petitioner and issued an endorsement dt. 18th Nov., 1993-Annex. A invalidating the return filed by the petitioner. Against the said order, petitioner filed rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder on 7th Aug., 2006 along with the revised statement of computation of total income. Further, it had also enclosed the statement of recalculation of depreciation in terms of the provisions of the Act. The 1st respondent'Dy. CIT having considered the representation filed by the petitioner, passed a quasi judicial order giving effect to the decision of the Tribunal. According to the petitioner, for the asst. yr. 1993-94, the unabsorbed depreciation was allowed to be carried forward since there was no positive income for the said year and effect was sought to be given to the consequential order based on the decision of the Tribunal. It is the petitioner's case, the unabsorbed depreciation to the tune of ₹ 3,33,01,745 was eligi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the depreciation for the asst. yr. 1993-94, could be carried forward upto 1994-95, 1995-96 and 1997-98. Once again the limitation under s. 32(2)(iii)(b) of the Act which was introduced has been repealed and by virtue of the same, the unabsorbed depreciation by carrying forward is for limitless assessment years. Thus, eight years period which was introduced during 1996-97 was done away with and it was permitted to carry forward the unabsorbed depreciation, by amendment during 2001-02. 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. Except that, in the beginning they did not make a mention by furni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 permissibl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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