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TMI Blog2018 (3) TMI 961X X X X Extracts X X X X X X X X Extracts X X X X ..... sources (for that year alone) and any amounts remaining still, to be adjusted against the profits and gains arising from the business or profession for a further period of 8 years. Hence, for the assessment year 1997-98, the claim for set-off of unabsorbed depreciation is allowable against the income from other sources. The amended provision was not in consonance with the Budget Speech or the Bill introduced; and neither of these provide any help in interpreting the amended provision. See Peerless General Finance and Investment Company Limited v. Commissioner of Income Tax, Kolkata- I [2016 (5) TMI 109 - SUPREME COURT OF INDIA] We answer the question for the assessment year 1997-98 in favour of the assessee and against the Revenue and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue relying on the judgment of the Honourable Supreme Court in (2017) 11 SCC 482 [Peerless General Finance and Investment Company Limited v. Commissioner of Income Tax, Kolkata- I] argued that the allowance could be claimed even as per the amendment only for the assessment year 1997-98. For the subsequent years in which there is a carry forward of unabsorbed depreciation, it could be allowed only as against the profits and gains arising from the business or profession. The learned counsel for the assessee relying on the very same decision of the Honourable Supreme Court contended that as per the amendment, the unabsorbed depreciation could be set-off to the extent it has not been set-off against the profits and gains arising from b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xxx xxx xxx Xxx xxx xxx ( c) for sub-section (2), the following subsection shall be substituted, namely:- ( 2) Where in the assessment of the assessee full effect cannot be given to any allowance under clause (ii) of sub-section (1) in any previous year owing to there being no profits or gains chargeable for that previous year or owing to the profits or gains being less than the allowance, then, the allowance or the part of allowance to which effect has not been given (hereinafter referred to as unabsorbed depr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (hereinafter referred to as unabsorbed depreciation allowance), as the case may be- ( i) shall be set-off against the profits and gains, if any of any business or profession carried on by him and assessable for that assessment year; ( ii) if the unabsorbed depreciation allowance cannot be wholly set-off under clause (i), the amount not so set-off shall be set-off from the income under any other head, if any, assessable for that assessment year; ( iii) If the unabsorbed depreciation allowance cannot be wholly set-off under clause (i) and clause (ii), the amount of allowance not so set-off shall be carried forward to the following assessment year and - ( a) it shall be set-off against the profits and gains, if an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epreciation is allowable against the income from other sources. The amended provision was not in consonance with the Budget Speech or the Bill introduced; and neither of these provide any help in interpreting the amended provision. 7. The learned Senior counsel would take us through the judgment of the High Court which was challenged in Peerless General Finance and Investment Company Limited. It is also pointed out that the SLP was dismissed. The learned Counsel for the assessee would however assert that the Supreme Court made the dismissal subject to the set off against income from other sources being available for the assessment year following 01.04.1997 . A reading of the judgment of the High Court definitely indicates that it was he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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