2018 (8) TMI 598 - HC - Income Tax

Carry forward of unabsorbed depreciation - limitation of six years - Held that - the issue raised herein stands concluded against the Appellant-Revenue and in favour of Respondent-Assessee - no substantial question of law arises. - revenue appeal dismissed.

Summary

Issues:
- Interpretation of Section 32(2) of the Income Tax Act, 1961 regarding the allowance of unabsorbed depreciation to be carried forward and adjusted after the lapse of assessment years.

Analysis:
The High Court of Bombay heard six appeals challenging the common order passed by the Income Tax Appellate Tribunal related to assessment years ranging from 1997-98 to 2002-03. The main question of law raised in all appeals was whether the unabsorbed depreciation from 1997-98 to 2001-02 could be carried forward and adjusted after the lapse of 8 assessment years as per Section 32(2) amended by the Finance Act, 2001. The counsel for the Revenue contended this issue, but acknowledged that the matter had been settled against the Revenue and in favor of the Assessee by a previous decision of the Court in CIT Vs. Hindustan Unilever Ltd. The Court noted that since the proposed question was already addressed in the Hindustan Unilever Ltd. case, no substantial question of law remained unresolved. Consequently, all appeals were dismissed with no order as to costs.

In summary, the High Court of Bombay dismissed the appeals challenging the order of the Income Tax Appellate Tribunal regarding the allowance of unabsorbed depreciation to be carried forward and adjusted after a lapse of assessment years. The Court relied on a previous decision in the case of Hindustan Unilever Ltd. to conclude that the issue had already been settled in favor of the Assessee, and thus, no new substantial question of law arose from the appeals.