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| The Tax Publishers2020 TaxPub(DT) 0958 (Bang-Trib) INCOME TAX ACT, 1961
Section 72
Since restrictions imposed by Finance Act (No.2) Act, 1996 in matter of set off of unabsorbed depreciation has been dispensed with and original provision was restored, thus, for computing quantum of unabsorbed depreciation after amendment, whatever balance of unabsorbed depreciation is available to the credit of assessee must be determined as unabsorbed depreciation eligible for carry forward and set off.
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Loss - Carry forward and set off - Limitation for carry forward of depreciation whether restricted to 8 years -
Issue arose as to whether CIT(A) was right in allowing appeal of assessee against provisions enacted in Finance Act 1988-89, in which limitation for carry forward of depreciation was restricted to 8 years. Held: Amendment relied upon by AO was substituted by Finance Act 2001 with effect from 01-04-2002, wherein new subsection (2) of section 32 reinstated provisions, as it stood in assessment year 1996-97. Restrictions imposed by Finance Act (No.2) Act, 1996 in matter of set off of unabsorbed depreciation has been dispensed with and original provision was restored. When quantum of unabsorbed depreciation is computed after the amendment, whatever balance of unabsorbed depreciation is available to the credit of assessee must be determined as unabsorbed depreciation eligible for carry forward and set off.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2011-12
IN THE ITAT, BANGALORE BENCH
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