2017 (6) TMI 549

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....n each assessment year. Since common issues are involved in all the four appeals, they are heard together and disposed of by this order. 2. The only issue for adjudication in all these four appeals is with reference to set-off of carry forward depreciation of earlier years. Assessee filed its return of income with the Central Processing Centre (CPC) claiming certain set-off. Since the returns were processed mechanically, the deficiency in placing the claims in respective columns has resulted in not allowing the set-off depreciation. Assessee preferred an application u/s. 154 which was rejected as the CPC was not empowered to rectify these mistakes in the absence of record. Accordingly, assessee preferred appeals on both intimation u/s. 1....

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....e Gujarat High Court in the case of General Motors India P. Ltd., Vs. Dy. Commissioner of Income Tax [354 ITR 244] (Guj). This decision was considered by the Co-ordinate Bench in the case of Dy. Commissioner of Income Tax Vs. Fenoplast Ltd., [42 ITR (Trib) 138] (Hyderabad), which is as under: "6.2 The hon'ble Gujarat High Court had discussed the issue of carrying forward of unabsorbed depreciation at length in the case of General Motors India P. Ltd. v. Deputy CIT [2013] 354 ITR 244 (Guj) in the order dated August 23, 2012 and held that the unabsorbed depreciation can be carried forward to the subsequent years without any restriction. Referring to amendment through Finance Act, 2001 the hon'ble Gujarat High Court held that ....

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....f 2001 had clarified that under section 32(2), in computing the profits and gains of business or profession for any previous year, deduction of depreciation under section 32 shall be mandatory. Therefore, the provisions of section 32(2) as amended by the Finance Act, 2001 would allow the unabsorbed depreciation allowance available in the assessment years 1997-98, 1999-2000, 2000-01 and 2001-02 to be carried forward to the succeeding years, and if any unabsorbed depreciation or part thereof could not be set off till the assessment year 2002-03 then it would be carried forward till the time it is set off against the profits and gains of subsequent years.' 6.3 Having considered the Circular No. 762 dated February 18, 1998, Circula....