TaxTMI 
TaxTMI 
2015 (8) TMI 374
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....epreciation pertaining to AY 1999-2000 be allowed against the income from house property for AY 2007- 08 which otherwise was not allowed by the AO especially in view of the Hon'ble ITAT Special Bench, Mumbai, decision in case of DCIT vs. Times Guaranty Ltd." 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A)'s erred in deciding that the assessee is entitled to c/f Short Term Capital Loss of Rs. 14,48,840/- pertaining to AY 2005-06 whereas actually as per records there is a Short Term Capital Gain of Rs. 12,32,400/- for that year i.e. AY 2005-06" 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A)'s erred in allowing the b/f business loss pertaining to AY 2004-05 to b....
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....on allowance for and upto AY 1996-97, which could not be set off upto AY 1996-97, shall be carried forward and set off against income under the head for a maximum period of eight (8) assessment years starting from AY 1997-98 i.e. upto 2004-05". 4. The Ld. CIT(A) relying upon the decision of Hon'ble Gujarat High Court in the case of General Motors, directed the AO to allow the assessee's claim of adjusting unabsorbed depreciation for the AY 1999-2000 from the house property income of this year after observing and holding as under: "Regarding the second issue of disallowing the depreciation of the AY 1999-2000 for setting off house property income of this year, Income-tax Act was amended w.e.f. from A.Y. 1997-98 to 2001-02. For ....
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.... Court decision, I could not find any contradictory decision on this issue, therefore, I direct the AO to allow the appellant's claim of adjusting unabsorbed depreciation of AY 1999-2000 form the house property income of this year. These grounds of appeal are allowed". 5. After considering the relevant finding given in the order, we find that the conclusion of the CIT(A) is based on the decision of Hon'ble Gujarat High Court, wherein, the Hon'ble High Court after discussing the entire provision of section 32(2) and amendment brought by Finance Act, 2001, had concluded as under: Therefore, the provisions of section 32(2) as amended by Finance Act, 2001 would allow the unabsorbed depreciation allowance available in the A.Y. ....
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.... amended by Finance Act, 2001. And once the Circular No.14 of 2001 clarified that the restriction of 8 years for carry forward and set off of unabsorbed depreciation had been dispensed with, the unabsorbed depreciation from A.Y.1997-98 upto the A.Y.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 Finance Act, 2001 and were available for carry forward and set off against the profits and gains of subsequent years, without any limit whatsoever. 6. Thus, the finding of the Ld. CIT(A) is based on the decision of Hon'ble Gujarat High Court in the case of General Motors India P. Ltd (supra), and no contrary decision of any other High C....