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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 ..... 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 building and debited an amount of Rs. 68,09,458/- in the profit and lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... substantial questions of law: "1. Whether the Appellate Authorities were correct in holding that earlier years business loss and unabsorbed depreciation should be set off against the profits on sale of capital assets and consequently the short terms capital gains worked out should be reduced? 2. Whether the Tribunal was correct in holding that as a result of amendment made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 was denied the said benefit. This amendment gave rise to an agitation even at the time of moving the said amendment before the Parliament. The Finance Minister on the floor of the Parliament gave an assu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e set off against taxable business profits or income under any other head for the assessment year 1997-98 and seven subsequent assessment years. Therefore, the proposed change will have effect only after 8 years and there is no cause for immediate concern about its likely impact on industry. Eight years is a period long enough for industry to adjust itself to the new dispensation and provide for d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without properly appreciating the speech of the Finance Minister, which found expression in the form of Circular issued by the Board, failed to follow the same on the pretext that the Tribunal in the case of Kampli Co-operative Sugar Factory Limited Vs. Joint CIT (70 TTJ 874) has taken a contrary view. It is submitted that the said order was also set aside by this Court in I.T.A. No.22/2001 and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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