9911796707
TMI Blog2018 (12) TMI 1638X X X X Extracts X X X X X X X X Extracts X X X X ..... DELHI HIGH COURT]. We confirm the order of CIT(A) deleting the addition. This issue of Revenue s appeal is dismissed. Disallowance of claim of unabsorbed depreciation carried forward and adjusting against the income after a lapse of 8 years - HELD THAT:- GENERAL MOTORS INDIA PVT. LTD VERSUS DEPUTY COMMISSIONER OF INCOME-TAX [ 2012 (8) TMI 714 - GUJARAT HIGH COURT] in case there is a still balance left over, it is 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 suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961 (hereinafter the Act ). 2. The first issue in this appeal of Revenue is against the order of CIT(A) deleting the disallowance of expenses relatable to exempt income made by the AO by invoking the provisions of section 14A read with Rule 8D of the Rules. For this Revenue has raised the following ground No. 1: - 1. On the facts and in the circumstances of the case arid in law, the ld. CIT(A) erred in deleting the disallowance made u/s 14A r.w.s. SD of ₹ 62,42,493/- ignoring the CBDT circular no. 512014 dated 12.02.2014 that disallowance u/s 14A has to be made irrespective of the fact whether any exempt income has been earned during the I year by the assessee or not. 3. At the outset, the learned C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in Income Tax Appeal No. 749/2014, which holds that the expression does not form part of the total income in Section 14A of the Income Tax Act, 1961 envisages that there should be an actual receipt of the income, which is not includible in the total income, during the relevant previous year for the purpose of disallowing any expenditure incurred in relation to the said income. The Income Tax Appellate Tribunal held that the provisions of Section 14A of the Income Tax Act, 1961 would not apply to the facts of this case as no exempt income was received or receivable during the relevant previous year. It is not the case of the Assessing Officer that any actual income was received by the assessee and the same was includible in the total i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts are that the AO noted from the computation of income that the assessee has adjusted brought forward unabsorbed depreciation against the income of the current year as under: - AY Amount 1999-2000 4,24,00,583 2000-2001 5,81,36,801 Total 10,05,37,654 8. According to AO, this set off of unabsorbed deprecation is claimed beyond 8 years and hence, not allowable. Aggrieved, assessee preferred the appeal before CIT(A), the CIT(A) relying on the earlier years allowed the claim of the assessee by following Para 11: - 11. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urrent 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. We are of the considered opinion that 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
