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TMI Blog2017 (6) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... sues are involved in all the four appeals, they are heard together and disposed of by this order. 2. The only issue for adjudication in all these four appeals is with reference to set-off of carry forward depreciation of earlier years. Assessee filed its return of income with the Central Processing Centre (CPC) claiming certain set-off. Since the returns were processed mechanically, the deficiency in placing the claims in respective columns has resulted in not allowing the set-off depreciation. Assessee preferred an application u/s. 154 which was rejected as the CPC was not empowered to rectify these mistakes in the absence of record. Accordingly, assessee preferred appeals on both intimation u/s. 141 as well as order u/s 154 in each asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otors India P. Ltd., Vs. Dy. Commissioner of Income Tax [354 ITR 244] (Guj). This decision was considered by the Co-ordinate Bench in the case of Dy. Commissioner of Income Tax Vs. Fenoplast Ltd., [42 ITR (Trib) 138] (Hyderabad), which is as under: "6.2 The hon'ble Gujarat High Court had discussed the issue of carrying forward of unabsorbed depreciation at length in the case of General Motors India P. Ltd. v. Deputy CIT [2013] 354 ITR 244 (Guj) in the order dated August 23, 2012 and held that the unabsorbed depreciation can be carried forward to the subsequent years without any restriction. Referring to amendment through Finance Act, 2001 the hon'ble Gujarat High Court held that (page 266) ' ... accordingly the amendment dispe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mputing the profits and gains of business or profession for any previous year, deduction of depreciation under section 32 shall be mandatory. Therefore, 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.' 6.3 Having considered the Circular No. 762 dated February 18, 1998, Circular No. 14 of 2001 dated November 22, 2001 and also the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of carrying forward the depreciation was limited by the pre-existing ruling that it could be done for eight years. All that the amendment by the Finance Act, 2002 did, with effect from April 1, 2002, was to remove the cap which meant that the previously limited benefit was not subjected to such restrictions. " 5. In view of the above judicial pronouncements of the Hon'ble High Courts and also with the decision of the Co-ordinate Bench on similar facts, I hold that assessee is entitled to set-off of unabsorbed depreciation pertaining to the period 1997-98 to 2001-02 also and the restriction of eight years does not apply. AO is directed to modify the orders accordingly, if not already done. Grounds are accordingly considered allowed. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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