TaxTMI 
TaxTMI 
2016 (4) TMI 376
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.... 19.11.2009 for assessment year 2007-08. 2. Only issue raised by assessee in its appeal is that Ld. CIT erred in confirming the assessment order of Assessing Officer by disallowing the depreciation for an amount of Rs. 228,77,86,812/- to be carried forward. 3. Facts of the case are that assessee is a Limited Company is engaged in business of manufacturing and sale of cement. Assessee has shown unabsorbed depreciation amounting to Rs. 228,77,86,812/- in the year under consideration. This depreciation pertains to AY beginning from AY 1992-93 to 2001-02. As per the law unabsorbed depreciation can be carried forward upto eight years. Ld. CIT found from the assessment order of AO that the issue of unabsorbed depreciation has not been examined ....
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....ive only from 01.04.2002 and unabsorbed depreciation of Rs. 228,77,86,812.00 pertains to AY prior to the amendment in the IT Act. Accordingly, Ld. CIT held that the order of AO is erroneous and prejudicial to the interest of revenue. Hence, the order of the AO was set aside with a direction to pass afresh order in the light of above discussion accordingly after giving reasonable opportunity of being heard to assessee. 4. Aggrieved, assessee preferred an appeal before us. Shri Siddharth Jhajharia & Shri Sujoy Sen Ld. Authorized Representative appearing on behalf of assessee and Shri Sandeep Chaube, Ld. Departmental Representative appearing on behalf of Revenue. 5. We have heard rival submissions of both the side and perused the materials ....
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....sions of section 32(2) as amended by Finance Act, 2001 would allow the unabsorbed depreciation allowance available in the A.Y 1997- 98, 1999-2000, 2000-01 an 2001-2002 to be carried forward to the succeeding years, and if any unabsorbed depreciation or part thereof could not be set off till the A.Y 2002-03 then it would be carried forward till the time it is set off against the profits and gains of subsequent years. Current depreciation is deductible in the first place from the income of the business to which it relates. If such depreciation amount is larger than the amount of the profits of that business, then such excess comes for absorption from the profits and gains from any other business or business, if any, carried on by the assessee....