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TMI Blog2017 (6) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... 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.639/Hyd/16, ITA No. 640/Hyd/16, ITA No. 641/Hyd/16 And ITA No. 642/Hyd/16 - - - Dated:- 9-6-2017 - Shri B. Ramakotaiah, Accountant Member For Assessee : Shri K.C. Devdas, AR For Revenue : Shri V. Sreekar, DR ORDER These four appeals are by assessee against similar orders for AYs. 2009-10 2010-11 dt. 26-02-2016 and 29-02-2016. In each of the order of the Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation upto 1996-97 was allowed to be carried forward and set-off, the depreciation pertaining to AY. 1997-98 to 2001-02 was directed to be subjected to limit of eight years, as per the then existing provisions. Even though Ld.CIT(A) noticed and analysed the provisions of Section 32(2) as amended by the Finance Act-2 of 1996 w.e.f. 1st April, 1997 and subsequent amendment by Finance Act, 2001 w.e.f. 1st April, 2002, which restored the position as existed prior to 1st April, 1997, he however, directed that the depreciation for AY. 1997-98 remaining un-absorbed will be governed by the un-amended provisions and will not be carried forward beyond eight years. Assessee is aggrieved on these directions and raised the grounds accordingly. 4. Aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance worked out in the assessment year 1997-98 only for eight subsequent assessment years even after the amendment of section 32(2) by the Finance Act, 2001, it would have incorporated a provision to that effect. However, it does not contain any such provision. Hence, keeping in view the purpose of the amendment of section 32(2) of the Act a purposive and harmonious 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 secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [2010] 4 ITR (Trib) 210 (Mumbai) was relied on by the Commissioner of Income-tax at the time of passing the order under section263, subsequently, the hon'ble Gujarat High Court in the case of General Motors India P. Ltd. v. Deputy CIT [2013] 354 ITR 244 (Guj) has held that restriction is not valid and unabsorbed depreciation could be set-off against the profits and gains of subsequent years. In view of this, I agree with the order of the Commissioner of Income-tax (Appeals) and reiterate that the assessee is entitled to set off the carried forward depreciation of the assessment years 1996-97 and 1997-98. In view of this, we direct the Assessing Officer to modify the orders if not done so far and allow the set-off accordingly . 4.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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