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2016 (1) TMI 747 - AT - Income TaxCarry forward of unabsorbed depreciation - CIT(A) allowed the claim - grievance of the Revenue appears to be that the application filed by the respondent assessee company is barred by limitation - Held that - Assessing Officer is duty-bound to intimate the losses which are entitled to be carry forward. If the Assessing Officer fails to do so, the right of the respondent assessee is to carry forward such losses is in no way affected. The right conferred upon the assessee to carry forward the losses of the previous years for a specified period is an absolute unqualified statutory right is nowhere conditional upon the quantification or intimation of the losses. That apart keeping in view the provisions of Clause II to sub-section (3) of Section 153, the period of limitation is not applicable to the proceedings consequent upon the orders of appellate or revisional authorities. Therefore, we do not find any reason to interfere with the orders of Ld. CIT(A).- Decided against revenue
Issues Involved:
- Carry forward of unabsorbed depreciation - Limitation period for filing application Analysis: Issue 1: Carry forward of unabsorbed depreciation The case involved an appeal by the Revenue against the order of the CIT(A) regarding the carry forward of unabsorbed depreciation for the assessment years 2000-01, 2003-04, 2004-05, and 2006-07. The dispute centered around the correct amount of unabsorbed depreciation to be carried forward by the assessee. The CIT(A) directed the Assessing Officer to allow the carry forward of unabsorbed depreciation at the amount claimed by the appellant, subject to verification. The CIT(A) relied on legal precedents, including the decision of Punjab & Haryana High Court, emphasizing the duty of the Assessing Officer to carry forward unabsorbed losses. The CIT(A) also addressed the issue of limitation for filing the application, citing relevant judgments to support the appellant's claim that the application was not time-barred. The CIT(A) concluded that the Assessing Officer was duty-bound to grant the carry forward of unabsorbed depreciation at the correct amount claimed by the appellant. Issue 2: Limitation period for filing application The Revenue contended that the application filed by the assessee company was barred by limitation. However, the Tribunal analyzed the relevant provisions of the Income Tax Act, specifically Section 157 and Clause II of sub-section (3) of Section 153. The Tribunal noted that the Assessing Officer's failure to notify the losses entitled to be carried forward did not affect the assessee's statutory right to carry forward such losses. Additionally, the Tribunal highlighted that the limitation period does not apply to proceedings following orders of appellate or revisional authorities. Consequently, the Tribunal dismissed the appeals filed by the Revenue and the cross objections filed by the assessee, upholding the decision of the CIT(A) regarding the carry forward of unabsorbed depreciation and the limitation period for filing the application. In conclusion, the Tribunal upheld the CIT(A)'s order directing the Assessing Officer to allow the carry forward of unabsorbed depreciation at the amount claimed by the appellant and dismissed the appeals filed by the Revenue, emphasizing the statutory right of the assessee to carry forward losses and the inapplicability of the limitation period in certain proceedings.
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