2014 (11) TMI 108

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....inery, factory shed and building and debited an amount of Rs. 68,09,458/- in the profit and loss account on account of the loss in sale of fixed assets. Assessing Officer determined the sale consideration at Rs. 3,04,97,900/-. The Assessing Officer did not accept the case of the assessee that he is entitled to set off of unabsorbed depreciation against other income. Aggrieved by the said order, assessee preferred an appeal. The appellate authority held that the assessee is entitled to set off of unabsorbed depreciation and business loss against the income from short-term capital gains of sale of assets. Aggrieved by the said order, Revenue preferred an appeal to the Tribunal, which appeal came to be dismissed upholding the orders of the App....

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....ciation. It is only by way of this amendment, it was denied the said benefit. This amendment gave rise to an agitation even at the time of moving the said amendment before the Parliament. The Finance Minister on the floor of the Parliament gave an assurance that this amendment will come into effect only 8 years after it became the law. The relevant extract reads as under:          "4. Clause 11 of the Bill seeks to amend Section 32 of the Income-tax Act, 1961, relating to depreciation. During the course of discussion on the General Budget, a number of Hon'ble members have expressed their apprehension that the proposed amendment limiting carry forward of unabsorbed depreciation to 8 years will a....