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2018 (4) TMI 707

iction of eight years for carry forward and set off of unabsorbed depreciation had been dispense with, the unabsorbed depreciation from the assessment year 1997-98 upto the assessment year 2001-02 got carried forward to the assessment year 2002-03 and became part thereof, it came to be governed by the provisions of section 32(2) as amended by the Finance Act, 2001, and were available for carry forward and set off against the profits and gains of subsequent years, without any limit whatsoever. This view has been adopted by the Hon’ble Delhi High Court in the cases of Motor & General Finance Ltd. vs. ITO (2017 (5) TMI 637 - DELHI HIGH COURT) and Pr. CIT vs. British Motor Car Co. (2018 (1) TMI 547 - DELHI HIGH COURT ). - Decided in favour of a .....

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d in deleting the addition amounting to ₹ 89,22,395/- on account of unabsorbed depreciation claimed for AY 1997-98. 2. The appellant craves leaves for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal. 4. The grounds raised in the Assessee s Cross Objection for assessment year 2007-08 read as under:- 1. That on the facts and circumstances of the case, the CIT(A) was not justified in confirming reassessment u/s. 148 even though same was not based on recording of proper satisfaction or requisite approval. 2. That the reassessment is merely based on change of opinion and same being after expiry of four years, there is no justification for assuming ju .....

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t of ₹ 2,44,90,263/- has been set off pertaining to assessment year 1997-98. AO further observed that as per the amendment by the Finance (No.2) Act, 1996 w.e.f. A.Y. 1997- 1998, the unabsorbed depreciation for AY. 1997-98 could be carry forward upto a maximum period of 8 years from the year in which it was first computed and this period expired in 2005-06 and cannot be allowed in AY. 2006-07 onwards. Therefore, income chargeable to tax amounting to ₹ 2,44,90,263/- has escaped assessment within the meaning of provisions. of section 147 of the Income Tax Act. Accordingly, notice u/s 148 of the Income Tax Act was issued on 12.03.2013 after duly recording the reasons leading to the belief that income had escaped assessment. In resp .....

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artly allowed the appeal of the assessee. Aggrieved with the impugned order, the Revenue is in appeal before the Tribunal. 7. Ld. DR relied upon the order of the AO and reiterated the contentions raised in the grounds of appeal. He further stated that as per the amendment by the Finance (No.2) Act, 1996 w.e.f. A.Y. 1997-1998, the unabsorbed depreciation for AY. 1997-98 could be carry forward upto a maximum period of 8 years from the year in which it was first computed and this period expired in 2005-06 and cannot be allowed in AY. 2006-07 onwards. Therefore, income chargeable to tax amounting to ₹ 2,44,90,263/- has escaped assessment within the meaning of provisions of section 147 of the Income Tax Act. Therefore, the setting off unab .....

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subsequent years, without any limit whatsoever. This view has been adopted by the Hon ble Delhi High Court in the cases of Motor & General Finance Ltd. vs. ITO (393 ITR 60 (Delhi) and Pr. CIT vs. British Motor Car Co. (1934) Ltd. 400 ITR 569 (Delhi). We further note that Ld. CIT(A)- 14, New Delhi in the impugned order dated 30.6.2016, by following the decision of the Hon ble Gujarat High Court in the case of M/s General Motors India Pvt. Ltd. vs. DCIT (Supra) and order dated 23.3.2014 passed in Appeal No. 396/14-15 by the CIT(A)-2, New Delhi for AY 2006-07, has rightly decided the similar and identical issue of disallowance of b/f depreciation in favour of the assessee in assessee s own case and directed the AO to allow the set off of .....

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