2017 (5) TMI 305

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....n the facts and circumstances of the case and in law, the ITAT erred in directing the AO to delete the addition of Rs. 3,00,544/- being excess payment of interest expenditure, without appreciating that the assessee did not establish the commercial expediency of making payment of interest at @ 15% instead of 12.50%? (b) Whether on the facts and circumstances of the case and in law the ITAT erred in directing the AO to allow set off /carry forward of unabsorbed depreciation as claimed by the assessee, without appreciating that nowhere in the provision of Section 32(2) of the Act as amended by Finance Act, 2001 w.e.f. 01/04/2002 or in Board's Circular No.14 of 2001, it is mentioned that carry forward of unabsorbed depreciation of A.Y. 1997-....

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.... the A.O. to allow set off /carry forward of unabsorbed depreciation as claimed by the assessee, without appreciating that as on 01/04/2008, there remained no unabsorbed depreciation of A.Y. 1997-98 to 1999-2000 to be set off against the profit and gains of business of the assessee for A.Y. 2008-09, in accordance with the provision of Section 32(2) of the Act as amended by Finance Act No.02 of 1996 w.e.f. 01/04/1997, since as on 01/04/2008, the period of 08 years for carry forward of unabsorbed depreciation of A.Y. 1997-98 to 1999-2000 ceased to exist? [2.0] We have heard Shri K.M. Parikh, learned advocate appearing on behalf of the revenue. At the outset, it is required to be noted that so far as proposed questions of law nos. (b) to (e....