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TMI Blog2014 (11) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... ded provision never came into force at all - When that being the case, the question of denying the benefit to the assessee did not arise – thus, the order of the Tribunal is upheld – Decided against revenue. - I.T.A. No.855/2008 - - - Dated:- 7-10-2014 - MR. N.KUMAR AND MR. B. MANOHAR, JJ. For the Appellant : Sri. Jeevan J. Neeralgi, Adv For the Respondent : Sriyuths. A.Shankar, Adv. and M. Lava, Adv. JUDGEMENT Per : N Kumar J : The Revenue has preferred this appeal against the order passed by the Tribunal holding that the assessee is entitled to set off of unabsorbed depreciation of earlier years in order to arrive at the total income. 2. The assessee has sold part of plant and machinery, factory shed and buil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be permissible for 8 such years ? 3. Whether the appellate authorities were right in holding that the provisions of sub section (2) of Section 32 of the Act cannot prevail over the provisions of Section 71 and 72 of the Act, particularly, in the wake of amendment to the provisions of Section 32 of the Finance Act, 1996, w.e.f. 1.4.1997 and as applicable to the facts of the assessee's case? 4. This controversy arose because of amendment to Section 32(2) of the Income Tax Act, 1961, (for short, hereinafter referred to as the Act ), which came into effect on 01.04.1997. It is not in dispute that prior to the amendment, assessee was entitled to set off of unabsorbed depreciation. It is only by way of this amendment, it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... companies. I accept the suggestions made by them. I, therefore, propose to provide that the time limit of 8 years shall not apply to sick companies, during the period the company is treated as a sick company under the Sick Industrial Companies (Special Provisions) Act, 1985. (emphasis supplied) 5. It is also not in dispute that even before the expiry of 8 years period, the amended provision was deleted and the original provision was restored. In other words, this amended provision never came into force at all. When that being the case, the question of denying the said benefit to the assessee did not arise. The Assessing Authority, without properly appreciating the speech of the Finance Minister, which found expression in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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