TMI Blog2017 (5) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that such disputed questions do not fall in the category of ‘mistake apparent from record’, as such, such matters will not be available for rectification u/s 154 of the Act. Placing reliance on the decision of the jurisdictional High Court in the case of General Motor India [2012 (8) TMI 714 - GUJARAT HIGH COURT], the ld. CIT(A) held that Any unabsorbed depreciation available to the assessee on 1st day of April 2002 (A.Y. 2002-03) will be dealt with in accordance with the provisions of section 32(2) as amended by Finance Act, 2001, and once the Circular No. 14 of 2001 clarified that the restriction of 8 years for carry forward and set off of unabsorbed depreciation had been dispensed with, the unabsorbed depreciation from A.Y 1997-98 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.12.2009 the assessment was finalized u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) determining the income of assessee as NIL. However, subsequently the Assessing Officer noticed from the Audit report that a sum of ₹ 2,30,23,769/- as the unabsorbed depreciation claimed by the assessee relates to the period upto 1999-2000 and a sum of ₹ 48,56,733/- pertained to Assessment Year 2000-01. According to the Assessing Officer, w.e.f. 1997-98 till 2001-02 the law was amended whereby the unabsorbed depreciation of a particular year is permissible to be carried forward for set off against the profits gains of business/profession only for a period of 8 years. However, by Finance Act, 2000 w.e.f. 1.4.2001 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e profits gains of subsequent years without any limit whatsoever. 5. Challenging the said finding of ld. CIT(A), Revenue is in appeal before us urging that the issue of carry forward of unabsorbed depreciation beyond 8 years was a mistake apparent from the record, as such available to the Assessing Officer for rectification u/s 154 of the Act and the ld. CIT(A) was wrong in holding that any unabsorbed depreciation available to an assessee as on 1.4.2002 will be dealt with in accordance with the provisions of Sec. 32(2) of the Act (as amended by the Finance Act, 2001) and on that premise to allow the same for carry forward and set off against the profits gains of subsequent years without any limit whatsoever. 6. Per contra, it is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether or not the amendment to Sec. 32 of the Act, which is relevant for our purpose, has prospective or retrospective effect on the application of the current year s depreciation and unabsorbed business loss and depreciation for the purpose of computation of income tax, is a disputed question of law and the Hon ble Supreme Court in the case of T.S. Balram vs Wockhardt Brothers (supra) and Macco Industries Ltd. (supra) has held that such disputed questions do not fall in the category of mistake apparent from record , as such, such matters will not be available for rectification u/s 154 of the Act. Nextly, while placing reliance on the decision of the jurisdictional High Court in the case of General Motor India (supra) vide paragraphs 37 and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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