TaxTMI 
TaxTMI 
2016 (1) TMI 1346
X X X X Extracts X X X X
X X X X Extracts X X X X
....umstances of the case and in law whether the Ld. CIT(A) was justified in directing set off of unabsorbed depreciation allowance pertaining to A.Y. 1996- 97 in A.Y. 2009-10 despite the fact that the same has lapsed after 8 years. 2. On the facts and in the circumstances of the case and in law whether the Ld. CIT(A) was justified in holding that the amendment to section 32(2) w.e.f. 01.04.2002 even applies to assessment years prior to A.Y. 2002-03 and is with retrospective effect. 3. The appellant prays that the order of the CIT(Appeals) on the above grounds be set aside and that of the Assessing Officer restored. 3. Brief facts are that during the course of assessment proceedings the Assessing Officer noted that as per the revised retur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Ltd. (120 ITR 921), wherein the Apex Court had held that it is a cardinal principle of taxation that law to be applied is that in force in the assessment year, until and unless expressly provided. The AR further relied on the decision of Hon'ble Gujarat High Court in the case of General Motors India P Ltd. in ITA No.1773 of 2012 wherein it was held that since unabsorbed depreciation from A.Y. 1997-98 to A.Y.2001-02 gets carried forward to A . Y . 2002-03 and became a part thereof, it gets governed by the provisions of section 32(2) as amended by the Finance Act, 2001 and was available for carry forward and set off against profits and gains of subsequent years without any limit of whatsoever in nature. The decision of Gujarat High Court ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t to the provisions of sub- section (2) of section 72 and sub-section(3) of section 73, the allowance or the part of the allowance to which effect has not been given , as the case may be, shall be added to the amount of the allowance for depreciation for the following previous year and deemed to the part of that allowance. Therefore, by amendment in section 32(1), unabsorbed depreciation of earlier years became part of the depreciation of the current year and can be allowed to be set off in the future years. The Board has also clarified vide circular No. 14 of 2001 the intent of the amendment that ills for enabling the industry to conserve sufficient funds to replace plant and machinery and accordingly the amendment dispenses with the restr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rdingly we upheld the order passed by learned CIT(A) on this issue. 9. In the result, the appeal filed by the Revenue is dismissed. 10. Now we take up ITA No. 356/Mum/2013 filed by the assessee. 11. The concise grounds of appeal filed by the assessee reads as under : I. Disallowance u/s. 14A r.w.R 8D of Rs. 1,03,13,806/- 1. The learned CIT(A) erred in upholding the disallowance u/s. 14A r.w. Rule 8D of Rs. 1,03,13,806/- [Rs 95.06 lacs out of interest+Rs 8.06 lacs out of administrative expense] without appreciating that amount utilised was for acquisition of stake in unlisted Joint ventures entities to accelerate the business operations and there is no tax free income generated, thus invoking Rule 8D is not justified, more so when div....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., which have not been considered by the Assessing Officer. Learned AR also relied upon the decision of the ITAT, Mumbai bench in the case of Garware Wall Ropes Ltd. (46 taxmann.com 18), wherein it was held that "section 14A of the Income Tax Act, 1961 read with Rule 8D of the Income Tax Rules, 1962- expenditure incurred in relation to income not includible in total income (share investment)-during relevant year, assessee received dividend income which was exempt from tax - Assessing Officer having invoked provisions of section 14A read with rule 8D, made certain disallowance - it was noted that primary object of investment was holding controlling stake in group concern and not earning any income out of investment -further investment was mad....