Case Law Details
DCIT Vs Windsor Machines Limited (ITAT Pune)
ITAT Pune held that unabsorbed depreciation pertaining to A.Y.s 1997-98 to 2000-01 is to be allowed carried forward and set off against the profits and gains of subsequent years without any limit whatsoever.
Facts- The present appeal has been filed by the revenue against order passed by the CIT(A) challenging action of CIT(A) in allowing carry forward of unabsorbed depreciation of Rs. 19,89,09,661/- pertaining to A.Y.s 1997-98 to 2000-01 for set off without any time limit.
Conclusion- Hon’ble Supreme Court in the case of Petrofils Co-operative Ltd. has held that the unabsorbed depreciation pertaining to A.Ys. 1997-98 to 2000-01 is to be dealt in accordance with the provisions of section 32(2) of the Act as amended by the Finance Act, 2001 by holding that the carry forward unabsorbed depreciation is to be allowed and set off against the profits and gains of subsequent years without any limit whatsoever.
Held that now it is a settled position of law that the unabsorbed depreciation pertaining to A.Ys. 1997-98 to 200001 could be carried forward and set off against the profits and gains of subsequent years without having 8 years of limit.
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