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TMI Blog2016 (4) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... n had been dispensed with, the unabsorbed depreciation from A.Y.1997-98 upto the A.Y.2001-02 got carried forward to the assessment year 2002-03 and became part thereof, it came to be governed by the provisions of section 32(2) as amended by Finance Act, 2001 and were available for carry forward and set off against the profits and gains of subsequent years, without any limit whatsoever In this view of the matter, we find that the order passed by Assessing Officer is not erroneous and prejudicial to the interest of revenue. In this view of the matter, we reverse the order of Ld. CIT passed u/s. 263 - Decided in favour of assessee - ITA No. 1513/Kol/2011 - - - Dated:- 5-2-2016 - N. V. Vasusdevan, JM And Waseem Ahmed, AM For the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bove. Assessee submitted that for the relevant AY 2007-08 no set off of the unabsorbed depreciation relating to AYs 1992-93 to 2001-02 have been claimed by assessee. Besides the above, assessee submitted that AO in his order for relevant to AY 2007-08 has already held that unabsorbed depreciation pertaining to assessment year beginning from 1992-93 to 2001-02 for an amount of ₹ 228,77,86,812/- not available to be carried forward. However, assessee has gone in appeal before Ld. CIT(A) against the assessment order which is sub judice. In view of above, assessee submitted that the issue of unabsorbed depreciation which was carried forward from the earlier years do not make the order of AO is erroneous and prejudicial to the interest of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that assessee's claim of unabsorbed depreciation pertaining to AYs beginning from 1992-93 to 2001-02 for an amount of ₹ 228,77,86,812/- which was allowed to be carried forward by AO in his order for the relevant AY i.e. 2007- 08 but Ld. CIT found that unabsorbed depreciation was not allowable to be carried forward for a period more than 8 years. Therefore, Ld. CIT opined that matter to be restored to file of AO for fresh adjudication. We further find that same issue has been decided by Hon'ble Gujarat High Court in the case of General Motors India (P) Ltd. vs. DCIT (2013) 354 ITR 244 (Guj) and headnote of extract portion is reproduced below:- Any unabsorbed depreciation available to an assessee on 1st day of April, 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be treated as unabsorbed depreciation and it is taken to the next succeeding year. Where there is current depreciation for such succeeding year the unabsorbed depreciation is added to the current depreciation for such succeeding year and is deemed as part thereof. If, however, there is no current depreciation for such succeeding year, the unabsorbed depreciation becomes the depreciation allowance for such succeeding year. Thus any unabsorbed depreciation available to an assessee on 1st day of April 2002 (A.Y 2002-03) will be dealt with in accordance with the provisions of section 32(2) as amended by Finance Act, 2001. And once the Circular No. 14 of 2001 clarified that the restriction of 8 years for carry forward and set off of unabsorb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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