Case Law Details
Addl. CIT Vs Nortel Networks India Pvt. Ltd (ITAT Delhi)
The issue under consideration is whether the Unabsorbed depreciation can be carried forward even if Income Tax Return has not been filed within period of Due date?
ITAT states that, the assessee filed return beyond the due date prescribed u/s 139(1) of the Act. In the return of income the assessee has declared loss and unabsorbed depreciation. As per the provision of section 139(3) to carry forward business loss u/s 72(1), assessee should have filed its return of income in time allowed u/s 139(1) of the Act. However, the above condition does not apply in case of unabsorbed depreciation in view of the provision of section 32(2) of the Act. The ld AO has correctly held that business loss is not allowable to be carried forward and has allowed only unabsorbed depreciation to be carried forward. The ld CIT (A) clearly referred to the provision of section 80 also The ld CIT (A) has also upheld the same view. In view of this, we do not find any infirmity in the order of the ld CIT (A) on this issue. Accordingly, the appeal raised by the AO are dismissed.
FULL TEXT OF THE ITAT JUDGEMENT
1. This appeal is filed for AY 2012-13 by the ld Additional Commissioner of Income-tax, Special Range-6, New Delhi [ The Ld AO] against the order of the ld CIT(A)-33, New Delhi [The ld CIT (A) ] dated 11.11.2016.
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