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| The Tax Publishers2019 TaxPub(DT) 7864 (Ahd-Trib) INCOME TAX ACT, 1961
Section 32(2)
Restriction of 8 years for carry forward and set off and unabsorbed depreciation has been dispensed with by subsequent amendment. Under section 32(2) further, existence of business was not required for set-off of brought forward unabsorbed depreciation under section 32(2) against income under various heads of income. Brought forward depreciation had to deemed to be depreciation of year under consideration, even if no profit under the head business / profession was chargeable to tax.
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Depreciation - Unabsorbed depreciation - Applicability of fetters of limitation of 8 years and requirement of existence of business during the relevant year -
Question arose for consideration was whether assessee was entitled to claim adjustment of brought forward of unabsorbed depreciation of earlier years without any fetters of eight years under section 32(2) against the income assessed under various heads of income other than 'business income' as assessee during the year under consideration has not carried any business activity.Held: Restriction of 8 years for carry forward and set off and unabsorbed depreciation has been dispensed with by subsequent amendment. Under section 32(2) further, existence of business was not required for set-off of brought forward unabsorbed depreciation under section 32(2) against income under various heads of income. Brought forward depreciation had to deemed to be depreciation of year under consideration, even if no profit under the head business / profession was chargeable to tax.
Relied:CIT v. Virmani Industries Pvt. Ltd. (1995) 215 ITR 60 (SC) : 1995 TaxPub(DT) 1370 (SC) and General Motors India Pvt. Ltd. v. Dy. CIT (2013) 354 ITR 244 (Guj) : 2013 TaxPub(DT) 624 (Guj-HC). CIT v. Gujarat Themis Biosyn Ltd. Tax Appeal No. 3 of 2014 : 2014 TaxPub(DT) 2213 (Guj-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
IN THE ITAT, AHMEDABAD BENCH
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