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The Tax PublishersITA No. 1054 of 2015
2021 TaxPub(DT) 0388 (Bom-HC)INCOME TAX ACT, 1961
Section 32(2)
Tribunal was justified in allowing unabsorbed deprecation for assessment year 1995-96 to be carried forward and set-off against future profits beyond eight years, i.e., assessment year 2004-05 because amendment made to section 32(2) by the Finance Act, 2001 and CBDT Circular No. 14/2001 was applicable retrospectively.
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Depreciation - Unabsorbed depreciation - Allowability - Carry forward and set-off against future profits beyond eight years
Issue under consideration was as to whether Tribunal was justified in allowing unabsorbed deprecation for assessment year 1995-96 to be carried forward and set off against future profits beyond eight years, i.e., assessment year 2004-05 holding amendment by the Finance Act, 2001 and CBDT Circular No. 14/2001 was applicable retrospectively. Held: As per CBDT Circular No. 14/2001, dt. 22-11-2001, any unabsorbed depreciation, which is available on 1-4-2001 would be dealt with in accordance with provisions of section 32(2) as amended by the Finance Act, 2001. Moreover, said Circular clarifies that restriction of eight years to carry forward and set off the unabsorbed depreciation has been dispensed with. Consequently, the Tribunal was justified in allowing unabsorbed deprecation for assessment year 1995-96 to be carried forward and set off against future profits beyond eight years, i.e., assessment year 2004-05 holding amendment by the Finance Act, 2001 and CBDT Circular No. 14/2001 was applicable retrospectively.
Followed:CIT v. Hindustan Unilever Ltd. (2016) 72 taxmann.com 325 (Bom) : (2017) 394 ITR 73 (Bom) : 2016 TaxPub(DT) 3997 (Bom-HC).
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2004-05
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