Unabsorbed depreciation of AYs 1997-98 to 2001-02 not eligible for relief granted by amended s. 32(2) in AY 2002-03- Special Bench Reverses S. 32 Depreciation Law

DCIT Vs. Times Guaranty (ITAT Mumbai Special Bench) Till AY 1996- 97 unabsorbed depreciation could be set off against income under any head. From AY 1997-98 to 2001-2002 unabsorbed depreciation could be set off only against business income. From AY 2002-2003 on wards unabsorbed depreciation could again be set off against income under any head of income. The question before the Special Bench was whether in AY 2003- 04, the unabsorbed depreciation relating to AY 1997- 1998 to 1999- 2000 could be set off against non-business income. The assessee claimed that law prevailing in the year of set-off ...