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TMI Blog2015 (11) TMI 1819X X X X Extracts X X X X X X X X Extracts X X X X ..... ard the losses to the subsequent year. The return of income filed by the appellant on 16.03.1990 was selected for scrutiny and notices under Section 142(1) and 143(2) of the Act were issued. In response to the said notice, the representative of the appellant appeared and furnished the details called for. The Assessing Officer processed the return of the appellant and passed the order of assessment disallowing the claim of carry forward of depreciation and set off of business losses vide order dated 26.03.1991. Being aggrieved by the said order, the appellant filed an appeal before the Commissioner of Income Tax (Appeals)(for short CIT(A) ), Belgaum, contending several grounds. The CIT(A), Belgaum, heard the appellant and passed the order allowing certain issues and set aside the other issues to the file of the Assessing Officer. However, the ground of the assessee regarding the denial of set off of carry forward of unabsorbed depreciation and investment allowance was untouched by the CIT(A), Belgaum. Pursuant to the order of the CIT(A), the Assessing officer passed an order giving effect to the appellate order of CIT(A) on 24.08.1992 in respect of issues allowed by the CIT(A). The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal. The Tribunal, primarily considering the belated returns filed by the assessee for the assessment year 1986-87 and further rectification application being filed by the assessee against the order of the CIT(A) before the Assessing Officer, held that the assessee is not entitled to carry forward the unabsorbed depreciation, investment allowance and 80J exemption as claimed by the assessee. The Tribunal has proceeded with hypertechnicalities without looking into the merits of the case. Filing of the returns belatedly would not disqualify the assessee to claim the benefit of unabsorbed depreciation, investment allowance and 80J exemption. 5. Learned counsel placed reliance on the judgment of this Court in the case of Brahmavar Chemicals Pvt. Ltd. -vs- Commissioner of Income Tax and another reported in (1999) 239 ITR 867 to contend that no time limit is provided for carry forward of depreciation of earlier years which has now been restricted to eight years as that of loss, but the Legislature has considered the unabsorbed depreciation and investment allowances differently than that of business loss. In the circumstances, the period of limitation prescribed under Section 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indicate that some refund or relief is due to him. This attitude would, in the long run, benefit the Department for it would inspire confidence in him that he may be sure of getting a square deal from the Department. Although, therefore, the responsibility for claiming refunds and reliefs rests with assessees on whom it is imposed by law, officers should : (a) draw their attention to any refunds or reliefs to which they appear to be clearly entitled but which they have omitted to claim for some reason or other ; (b) freely advise them when approached by them as to their rights and liabilities and as to the procedure to be adopted for claiming refunds and reliefs. " 8. Per contra, Sri K.V.Aravind, learned counsel appearing for the respondent-Revenue contended that at the first instance the assessee having filed the return belatedly for the assessment year 1986-87 is not entitled to carry forward the unabsorbed depreciation, investment allowance and 80J exemption for the assessment year 1987-88. In the appeal preferred by the assessee before the CIT(A), the Appellate Authority having considered the grounds urged by the appellant on certain issues remanded the matter back to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case?" 10. It is an undisputed fact that the return of income for the assessment year 1986-87 was filed by the assessee on 25.09.1986 belatedly. However, filing of belated returns itself would not restrain the assessee from claiming set off of unabsorbed depreciation, investment allowance and 80J exemption. This aspect of the matter is extensively considered by the learned Single Judge of this Court in the case of Brahmavar (supra) and has held that there is no time limit provided for carry forward of depreciation of earlier years and unabsorbed depreciation and investment allowance, stands differently than that of the business loss. In respect of other assesses other than in case of amalgamation the unabsorbed depreciation or investment allowance, if claimed in a return filed after the time prescribed under Section 139(1) is not restricted. The Division Bench of Delhi High Court, Punjab and Haryana High Court in the Judgments cited supra have held that the assessee is entitled to get unabsorbed depreciation and set off in the subsequent years even if no valid return for the assessment year relating to which the depreciation and set off arises, had been filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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