TMI Blog2013 (8) TMI 1149X X X X Extracts X X X X X X X X Extracts X X X X ..... 8/- was the carried forward business loss. He submitted that the amount of ₹ 16,10,865/- represents the total of the income declared by the assessee under the heads income from house property and profits and gains of business or profession . Hence, he submitted that the Assessing Officer may be directed to make necessary corrections and to treat the amount of ₹ 19,19,810/- as shown by the assessee as the carried forward business loss. 4. The ld. DR submitted that he had no objection on this issue being restored to the file of the Assessing Officer for verification and thereafter deducting the correct figure of carried forward business loss in the case of the assessee. 5. We, therefore, direct the Assessing Officer to ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) of the Income-tax Act, 1961 are not confined to profits and gains derived from business. They refer to the totality of the profits or gains computed under the various heads and chargeable to tax. It is, therefore, clear that effect must be given to depreciation allowance first against the profits and gains of the particular business whose income is being computed under section 28 and if the profits of that business are not sufficient to absorb the depreciation allowance, the allowance to the extent to which it is not absorbed would be set off against the profits of any other business and if a part of the depreciation allowance still remains unabsorbed, it would be liable to be set off against the profits and gains chargeable under any o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of General Motors India (P) Ltd vs DCIT ,[2013] 257 CTR (Guj) 123, and submitted that in para 30 of the order, the Hon'ble Gujarat High Court has held that amendment to section 32(2) by the Finance Act, 2001 is applicable from assessment year 2002-03 and subsequent years. This means that any unabsorbed depreciation available to an assessee on 1.4.2002 (assessment year 2002-03) will be dealt with in accordance with the provisions of section 32(2) as amended by the Finance Act, 2001 and not by the provisions of section 32(2) as it stood before the said amendment. Therefore, unabsorbed depreciation from assessment year 1997-98 upto 2001-02 got carried forward to the assessment year 2002-03 became part thereof which came to be govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed depreciation. The amendment is applicable from assessment year 2002-03 and subsequent years. This means that any unabsorbed depreciation available to an 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 not by the provisions of section 32(2) as it stood before the said amendment. Had the intention of the Legislature been to allow the unabsorbed depreciation allowance worked out in A.Y. 1997-98 only for eight subsequent assessment years even after the amendment of section 32(2) by Finance Act, 2001 it would have incorporated a provision to that effect. However, it does not contain any such provision. Hence keeping in view the purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other business or business, if any, carried on by the assessee. If a balance is left even thereafter, that becomes deductible from out of income from any source under any of the other heads of income during that year. In case there is a still balance left over, it is to be treated as unabsorbed depreciation and it is taken to the next succeeding year. Where there is current depreciation for such succeeding year the unabsorbed depreciation is added to the current depreciation for such succeeding year and is deemed as part thereof. If, however, there is no current depreciation for such succeeding year, the unabsorbed depreciation becomes the depreciation allowance for such succeeding year. We are of the considered opinion that any unabsor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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