2018 (4) TMI 1683

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....ing the Assessing Officer to allow set-off of carried forward depreciation of A.Y. - 1997-98, 1998-99, 1999-2000 and 2000-01 from the income of A.Y. 2007-08, 2008-09 and 2009-10, relying upon the decision of the confidence Petroleum India Ltd., When the appeal of the Revenue in the case of Confidence Petroleum India Ltd., is pending with the Hon'ble Bombay High Court? 2. Whether on the facts and in circumstances of the case and in law, the Ld. CIT(A) is right in relying on the circular no. 14 of 2001, wherein it is mentioned that 'the Act has dispensed with the restriction of 8 years for carry forward and set-off of unabsorbed depreciation'' these amendments will take effect from the 1st April, 2002, and will, accordingly, appl....

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.... completing the assessment denied the setoff of unabsorbed depreciation relevant to Assessment Years 1997-98 and 2000-2001 for the reason that such unabsorbed depreciation can be carried forward only to eight Assessment Years immediately succeeding Assessment Year for which the loss was first computed and setoff against any other heads of income. Therefore, he held that unabsorbed depreciation for the Assessment Years 1998-99 and 1999-2000 cannot be adjusted against the income for Assessment Year 2009-10 as eight years have already lapsed. Accordingly, the unabsorbed depreciation of Rs..55,54,310/- brought forward from Assessment Year 1999-2000 was disallowed. 7. On appeal Ld.CIT(A) following the decision of the Mumbai Bench in the case ....

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.... view of the fetter (of eight years) in carrying forward depreciation for Assessment Year 1997-98 upto Assessment Year 2002-03, The set off of the same cannot be allowed in this Assessment year. (c) We find that the impugned order of the Tribunal while allowing the Assessee - respondents' claim follows the decision of the Gujarat High Court in General Motors India (P) Ltd v. Dy. CIT [2013] 354 ITR 244/[2012] 210 Taxman 20/25 taxmann.com 364 wherein on identical facts it was held that the unabsorbed depreciation for the Assessment Year 1997-96 upto Assessment Year 2001-02 could be allowed to be set off, if it was still unabsorbed on 1st April, 2001 The above decision also placed upon the CBDT circular No. 14 of 2001 dated 22nd N....