Income Tax

Carry forward of unabsorbed depreciation beyond 8 years-SC dismisses SLP of ITD

Carry forward of unabsorbed depreciation beyond 8 years for periods prior to amendment to section 32(2)- SC dismisses SLP of the ITD

ABCAUS Case Law Citation:
ABCAUS 2746 (2019) (01) SC

The Hon’ble Supreme Court has dismissed the Special Leave Petition (SLP) of the Income Tax Department against the decision of the High Court on the issue of carry forward of unabsorbed depreciation beyond 8 years for periods prior to amendment.

The Finance Act, 2001 had amended Section 32(2) of the Income Tax Act, 1961 (the Act). Prior to the amendment, the said section provided a restriction of eight years for the carry forward of depreciation. This restriction was brought in, by Finance Act, 1996 before which there was no restriction or cap in the carrying forward of depreciation.

The Hon’ble High Court had upheld the order of the ITAT that the unabsorbed depreciation pertaining to Assessment Year 1997-98 to Assessment Year 2001-02 was allowable to be carried forward and adjusted after the lapse of 8 assessment years in view of the Section 32(2) as amended by the Finance Act, 2001.

Download Full Judgment Click Here >>

Share

Recent Posts

  • Income Tax

Date of digital signature and issue determines date of a notice u/s 148 of Income Tax Act

Date of digital signature and issuance determines the date of a notice u/s148 of the Income Tax Act - ITAT…

2 days ago
  • DGFT

DGFT authorises IACCIA to issue Certificate of Origin (Non- Preferential)

DGFT authorises IACCIA to issue Certificate of Origin (Non- Preferential) w.e.f. 9th January 2026 In exercise of powers conferred under…

2 days ago
  • Income Tax

Net profit rate may not have variation commensurate to increase of turnover

Net profit rate may not per se experience variation commensurate to the increase of turnover. In a recent judgment, Allahabad…

2 days ago
  • Excise/Custom

Mushroom growing apparatus cannot be classified as ‘agricultural machinery’

Mushroom growing apparatus cannot be classified as ‘agricultural machinery’ under Customs Tariff Heading 8436. In a recent judgment, Hon'ble Supreme…

2 days ago
  • negotiable instrument act

Statutory presumption attached to issuance of a cheque to be accorded due weight – SC

Statutory presumption attached to issuance of a cheque, being one made in discharge of a legally enforceable debt or liability,…

2 days ago
  • tender

Highest bid can’t be discarded on mere expectation of even more higher bid

Merely because the authority conducting auction expects higher bid than the highest bidder is no reason to discard the highest…

3 days ago