TaxTMI 
TaxTMI 
2018 (3) TMI 961
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....ent years are 1997-98 and 1998-99. The assessee claimed setting-off of unabsorbed depreciation first against the profits and gains arising out of the business, and then against income from other sources, ie: interest income from Bank deposits. The question of law raised for both the years is whether the Income Tax Appellate Tribunal was right in setting aside the suo motu revision made by the Commissioner of Income Tax under Section 263 of the Income Tax Act, 1961, which declined the benefit of set-off of unabsorbed depreciation allowance as against the income from other sources. 2. In both the years, the unabsorbed depreciation was inter alia set-off against the income from other sources being interest in Bank deposits, which was found ....
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....for the assessment year 1997-98 (previous year 1996-97), there can be no dispute that the assessee is entitled to setoff against the income from other sources also. 4. Much has been stated about the Budget Speech in the orders under challenge. But, we are of the opinion that the same need not be looked into at all. The provisions of the Bill and the statute are available and we would confine our consideration to that. Whatever be the intention expressed in the Budget Speech, the law passed by the Parliament alone is relevant and external aid need be resorted to only if there is any ambiguity in the provision incorporated. The provision as available in Finance (No.2) Bill, 1996 is as under: "11. Amendment of section 32.- In secti....
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....ment of the assessee full effect cannot be given to any allowance under clause (ii) of sub-section (1) in any previous year owing to there being no profits or gains chargeable for that previous year or owing to the profits or gains being less than the allowance, then, the allowance or the part of allowance to which effect has not been given (hereinafter referred to as unabsorbed depreciation allowance), as the case may be,- (i) shall be set off against the profits and gains, if any, of any business or profession carried on by him and assessable for that assessment year ; (ii) if the unabsorbed depreciation allowance cannot be wholly set off, the amount of allowance not so set off shall be carried forward to the following a....
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....ot so set-off shall be set-off from the income under any other head, if any, assessable for that assessment year; (iii) If the unabsorbed depreciation allowance cannot be wholly set-off under clause (i) and clause (ii), the amount of allowance not so set-off shall be carried forward to the following assessment year and - (a) it shall be set-off against the profits and gains, if any, of any business or profession carried on by him and assessable for that assessment year; (b) if the unabsorbed depreciation allowance cannot be wholly so set-off, the amount of unabsorbed depreciation allowance not so set off shall be carried forward to the following assessment year not being more than eight assessment years immediatel....
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.... General Finance and Investment Company Limited. It is also pointed out that the SLP was dismissed. The learned Counsel for the assessee would however assert that the Supreme Court made the dismissal subject to the set off against income from other sources being available "for the assessment year following 01.04.1997". A reading of the judgment of the High Court definitely indicates that it was held that there could be no set-off of unabsorbed depreciation against income from other sources from the assessment year 1998- 1999. The order of the Honourable Supreme Court is seen from the following extract:- "ORDER OF THE SUPREME COURT 1. Heard the learned counsel for the parties and perused the relevant material. 2. T....