2022 (1) TMI 847

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....A No.2036(Mds)/2007, pertaining to the assessment year 2001-02. 2.On 14.09.2009, the aforesaid appeal was admitted on the following substantial questions of law: A. Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was right in law in upholding the jurisdiction of the assessing officer u/s 154 to adjust the unabsorbed depreciation loss of earlier assessment years against the current year's business income, while computing deduction u/s 80HHC?. B. Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was right in not holding that the issue of setting off brought forward unabsorbed depreciation of earlier years against the current year&#39....

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....d. The appellant filed its objection on 11.12.2006. Rejecting the said objection, the assessing officer held that the order dated 28.03.2006 suffers from error apparent on the face of record inasmuch as it was contrary to the decision of the Hon'ble Supreme Court in IPCA Laboratories Ltd. v. Deputy Commissioner of Income Tax, 266 ITR 521, in which, it was held that "section 80AB would override all other provisions in Chapter VI A" and accordingly, revised the assessment. 5.Aggrieved by the rectification of assessment on 15.12.2006, the appellant preferred an appeal before the Commissioner of Income Tax (Appeals)-1, Coimbatore, who referring to the decision of the Hon'ble Supreme Court in IPCA Laboratories Ltd (supra), found that ....

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....assed by the Assessing Officer." Therefore, the assessee is before this court with the present appeal, suggesting the substantial questions of law, as stated supra. 7.Though the learned counsel for the appellant would agree that the issue, as to whether it is permissible to adjust unabsorbed depreciation loss of the earlier assessment year, while computing deduction under section 80HHC, stands decided against the appellant/assessee, he attempted to suggest that the said issue was debatable, when the assessing officer sought to invoke his power under section 154 of the Income Tax Act, 1961, on the premise that the said issue was finally resolved in favour of the Revenue by the Hon'ble Supreme Court only on 17.05.2007, in the case o....