The Tax Publishers2020 TaxPub(DT) 1008 (SC)

INCOME TAX ACT, 1961

Section 261 Section 32(2)

Where the department preferred SLP to appeal against the judgment of Bombay High Court in Pr. CIT v. Supreme Petrochem Ltd. [ITA Nos. 661 & 669 of 2017, dt. 7-6-2019] : 2019 TaxPub(DT) 4440 (Bom-HC), whereby the High Court held that as decided in General Motors India (P) Ltd. v. Dy. CIT (2013) 354 ITR 244 (Guj) : 2013 TaxPub(DT) 624 (guj-HC) and unabsorbed deprecaiton available to an assessee on 1-4-2002 would be dealt with in accordance with the provisions of section 32(2) as amended by Finance Act, 2001, thus, once the Circular No. 14 of 2001 clarified that restriction of 8 years for carry forward and set-off of unabsorbed depreciation year 1997-98 upto the assessment year 2001-02 got carried forward to the assessment year 2002-003 and became part thereof. Therefore, unabsorbed depreciation was available for carry forward and set-off against the profits and gains of subsequent years, without any limit, whatsoever, the Supreme Court dismissed the SLP.

Appeal (Supreme Court) - Special leave petition - Unabsorbed depreciation - Carry forward and set-off of unabsorbed depreciation of amalgamating company

Department preferred SLP to appeal against the judgment of Bombay High Court in Pr. CIT v. Supreme Petrochem Ltd. [ITA Nos. 661 & 669 of 2017, dt. 7-6-2019] : 2019 TaxPub(DT) 4440 (Bom-HC), whereby the High Court held that as decided in General Motors India (P) Ltd. v. Dy. CIT (2013) 354 ITR 244 (Guj) : 2013 TaxPub(DT) 624 (Guj-HC) and unabsorbed depreciation available to an assessee on 1-4-2002 would be dealt with in accordance with the provisions of section 32(2) as amended by Finance Act, 2001, thus, once Circular No. 14 of 2001 clarified that restriction of 8 years for carry forward and set-off of unabsorbed depreciation had been dispensed with, the unabsorbed depreciation from assessment year 1997-98 upto the assessment year 2001-02 got carried forward to the assessment year 2002-03 and became part thereof. Therefore, unabsorbed depreciation was available for carry forward and set-off against the profits and gains of subsequent years, without any limit, whatsoever. Held: The Supreme Court dismissed the SLP.

REFERRED :

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT