Carry forward of unabsorbed depreciation upheld under section 32(2); reopening challenge treated as academic.

Unabsorbed depreciation from assessment year 1997-98 was held available for carry forward and set-off against income of assessment year 2005-06 under section 32(2) of the Income-tax Act, following the binding precedent in General Motors India Pvt. Ltd. The challenge to reopening under section 147 was not separately examined because that issue had become academic in light of the controlling decision.

---

---

Issues: Whether the assessee was entitled to carry forward and set off unabsorbed depreciation for assessment year 1997-98 against the income of assessment year 2005-06 under section 32(2) of the Income-tax Act, 1961, and whether the challenge to reopening of assessment under section 147 of the Income-tax Act, 1961 survived for adjudication.

Analysis: The second question raised by the Revenue was stated to be squarely covered by the decision of the Court in General Motors India Pvt. Ltd. v. Deputy Commissioner of Income Tax. In view of that binding precedent, the controversy regarding reopening did not require separate adjudication and was treated as academic.

Conclusion: The assessee was held entitled to the benefit claimed under section 32(2) of the Income-tax Act, 1961, and the reopening issue was not adjudicated as it had become academic.

---