2018 (2) TMI 1458

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.... employees contribution to Provident Fund and ESIC. 3. The AO, while completing the assessment, disallowed the PF contribution and ESIC in respect of employees in view of the provisions of Section 2(24)(x) r.w.s. 36(1)(va) of the Act for the reason that these amounts were remitted by the assessee beyond the due date specified in the respective Acts. It was contended before the AO that since these payments were made within the due date for filing return of income no disallowance is required to be made. However, the AO did not agree with the contention of the assessee and disallowed the same under Section 43B of the Act. 4. On appeal, the CIT(A), following the decision of the Hon'ble Jurisdictional High Court in the case of CIT vs. ....

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....of the learned CIT(A) in deleting the disallowance made towards employees' PF contribution and ESIC. Thus, the ground is dismissed. 8. The next ground raised by the Revenue is in respect of allowing set off of brought forward depreciation for A.Y. 2001-02 beyond eight assessment years. 9. The learned counsel for the assessee at the outset submitted that the issue in appeal is squarely covered by the decision of the Hon'ble Gujarat High Court in the case of General Motors Pvt. Ltd. 257 CTR 123 and following the decision the Coordinate Bench in assessee's own case in ITA No. 5354/Mum/2013 dated 08.06.2015 for A.Y. 2009-10 allowed set off unabsorbed depreciation pertaining to A.Y. 2000-01. 10. The learned D.R., on the other hand, ....

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....n of assessment years prior to AY 2000-01 is allowed to be carried forward and set off against the income of subsequent years in view of amendment made in section 32 of the Act. This dispute arose in various cases. The ITAT Special Bench Mumbai in-the case of M/ s. Times Guaranty Ltd. discussed this issue and divided the unabsorbed depreciation in three parts i.e. (i) Unabsorbed Depreciation pertaining to the assessment year up to AY 1996-97; (ii) Pertaining to Assessment Year 1997-98 to AY 2001-02 & (iii) Depreciation pertaining to Assessment Year from AY 2002-03 onwards. The Special Bench held that the unabsorbed depreciation for the second period i.e. for AY 1997-98 to AY 2001-02 can be carried forward....