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TMI Blog2016 (7) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... No.14 of 2001 clarified that the restriction of 8 years for carry forward and set off of unabsorbed depreciation 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 - Decided in favour of assessee - ITA No. 860/JP/2014 - - - Dated:- 7-6-2016 - SHRI KUL BHARAT, JM SHRI T.R. MEENA, AM For The Revenue : Shri Raghuvir Singh Dugar (Addl.CIT) For The Assessee : Shri Madhukar Garg (C.A.) ORDER P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rendered in the cases of General Motors India Pvt. Ltd. vs. DCIT, 354 ITR 244 (Guj.) and Ausom Enterprises Ltd. vs. DCIT, 105 DTR 78 (Guj.). 3. We have heard rival contentions and perused the material available on record. The ld. CIT (A) has decided the issue by following the judgments of the Hon ble Gujarat High Court in the cases of General Motors India Pvt. Ltd. vs. DCIT, 354 ITR 244 (Guj.) and Ausom Enterprises Ltd. vs. DCIT, 105 DTR 78 (Guj.) by observing as under :- 2.3. I have perused the facts of the case, the assessment order and the submissions of the appellant. In the order 143(3), the income declared in the return of income has wrongly been taken as (-) ₹ 25,88,687,673/- instead of Rs. Nil. This is a mistake appar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceeding previous years. 36. The purpose of this amendment has been clarified by the Central Board of Direct Taxes in Circular No. 14 of 2001 (see [2001] 252 ITR (St.) 65, 90). The relevant portion of the said Circular reads as under : Modification of provisions relating to depreciation 30.1 Under the existing provisions of section 32 of the Income-tax Act, carry forward and set off of unabsorbed depreciation is allowed for eight assessment years. 30.2 With a view to enable the industry to conserve sufficient funds to replace plant and machinery, specially in an era where obsolescence takes place so often, the Act has dispensed with the restriction of eight years for carry forward and set off of unabsorbed depreciat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onious interpretation has to be taken. While construing the taxing statutes, rule of strict interpretation has to be applied, giving fair and reasonable construction to the language of the section without leaning to the side of the assessee or the Revenue. But if the Legislature fails to express clearly and the assessee becomes entitled for a benefit within the ambit of the section by the clear words used in the section, the benefit accruing to the assessee cannot be denied. However, Circular No. 14 of 2001 had clarified that under section 32(2), in computing the profits and gains of business or profession for any previous year, deduction of depreciation under section 32 shall be mandatory. Therefore, the provisions of section 32(2) as amen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to an assessee on the 1st day of April, 2002 (the assessment year 2002-03), will be dealt with in accordance with the provisions of section 32(2) as amended by the Finance Act, 2001. And once Circular No. 14 of 2001 clarified that the restriction of eight years for carry forward and set off of unabsorbed depreciation had been dispensed with, the unabsorbed depreciation from the assessment year 1997-98 up to the assessment year 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 the Finance Act, 2001, and were available for carry forward and set off against the profits and gains of subsequent years, without any limit whatsoever. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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