2019 (3) TMI 2043

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.... depreciation of Rs. 38,01,74,420/- u/s. 32 has been deleted. 2. The assessee has filed the return of income on 22.11.2014 declaring total income of Rs. NIL. Upon compulsory scrutiny notice u/s. 143(2) of the Act dated. 31.08.2015 followed by a questionnaire was served upon the assessee. It appears from the record that during the assessment proceedings it was found that the assessee has brought forward depreciation of Rs. 38,01,74,402/- pertaining to assessment year 2001-02. The Ld. AO was of the view that the assessee since completed time limit for set off of business loss and unabsorbed depreciation in 2009-10, the same cannot be set off against the income for assessment year 2014- 15. It was further observed that Sec. 32(2) does not per....

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....ot be allowed to the assessee." 6.2 Alongwith the contention and other case laws the appellant cited the judgment of the Hon'ble jurisdictional High Court of Gujarat, Ahmedabad in the case of General Motors India (P.) Ltd. Vs. DCIT [354 ITR 244] [2012] "The said CBDT Circular clarifies the intent of the amendment that it is for enabling the industry to conserve sufficient funds to replace plant and machinery and, accordingly, the amendment dispenses with the restriction of 8 years for carry forward and set off of unabsorbed depreciation. This amendment has become applicable from assessment year 2002-03 and subsequent years meaning that any unabsorbed depreciation available to an assessee on 1st day of April, 2002 (assessment year 2002....

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....o 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." It further stated that "It is held that any unabsorbed depreciation available to an assessee on 1st day of April, 2002 (A.Y. 2002-03) will be dealt with in accordance with the provisions of section 32(2) as amended by Finance Act, 2001. And once the Circular No. 14 of 2001 clarified that the restriction of 8 years for carry forward and set off of unabsorbed depreciation had been dispensed with, the unabsorbed depreciation from assessment year 1997-98 up to the assessment year 200....

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....ITA Nos. 1993-1994/Ahd/2016 for Assessment Years 2009-10 and 2012- 13 operative portion whereof is as follows: "We have heard rival contentions and perused the material on record carefully. We have noticed that the Coordinate Bench of ITAT Ahmedabad vide ITA No. 2393/Ahd/2013 dated 03.05.2017 in the case of Gujarat Lease Finance ltd. has decided the identical issue in favour of assessee. The part of the judicial findings and the principles laid down by the Hon'ble Jurisdictional High Court in the case of General Motors Pvt. Ltd. are reproduced here as under:- "We are of the considered opinion that any unabsorbed depreciation available to an assessee on 1st day of April 2002 (A.Y. 2002-03) will be dealt with in accordance with the provis....