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TMI Blog2014 (5) TMI 1027X X X X Extracts X X X X X X X X Extracts X X X X ..... igibility of unabsorbed depreciation to be carried forward was limited for a period of eight years. But, the old position that unabsorbed depreciation becomes the current depreciation under section 32(2) and therefore eligible for carry forward and set off without any limitation, was restored by the amendment brought in with effect from the assessment year 2002-03. When the quantum of unabsorbed depreciation is computed after the amendment, whatever balance of unabsorbed depreciation is available to the credit of the assessee, must be determined as unabsorbed depreciation eligible for carry forward and set off. The interregnum restriction of limiting the claim for an eight-year period does not take away the right of an assessee to claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 60,209. This is because, according to assessing authority, unabsorbed depreciation relating to the earlier assessment years 1989-90 to 1998-99 was not eligible to be carried forward beyond a period of eight assessment years. In the light of the reply filed by the assessee, the proposed rectification was dropped. 4. Thereafter, the Assessing Officer issued a notice under section 148 and completed the assessment under section 143(3) read with section 147 of the Income-tax Act, 1961, withdrawing a sum of ₹ 13,71,60,209 from the unabsorbed depreciation eligible for carry forward and set off. 5. The first appeal was dismissed by the Commissioner of Income-tax (Appeals). Therefore, the second appeal before us. 6. The only issue on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unabsorbed depreciation, forever. The balance of unabsorbed depreciation revives back into life and becomes eligible for carry forward and set off along with the other part unabsorbed depreciation available to the credit of the assessee. 9. Therefore, we set aside the orders of the lower authorities on this issue and direct the Assessing Officer to redetermine the unabsorbed depreciation eligible for carry forward and set off in the above lines. 10. As the appeal is decided on merit of the issue, we are not inclined to examine the ground raised by the assessee regarding the justification of issuing notice under section 148 and subsequently, completing the assessment under section 147/143(3). 11. In the result, this appeal filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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