Case Law Details
Brief of case:
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 2002-03and became part thereof, it came to be governed by the provisions of section 32(2) as amended by Finance Act, 2001 and were available for carry forward and set off against the profits and gains of subsequent years, without any limit whatsoever.
Fact of the case:
The Assessee is a subsidiary of EPCOS A.G. Germany and during the assessment year under consideration the respondent was engaged in the business of manufacturing and sale of soft ferrites components. The Assessee filed its return of income for the assessment year 2004-05 on 01-11-2004 declaring a total loss of Rs. 18,67,08,427/-. In the said return the assessee claimed, inter alia, carry forward unabsorbed deprecation for AY. 1994-95, AY. 1995-96 and AY. 1996-97 as per following details: SI. No. Assessment Year Amount (Rs.)
