Unabsorbed depreciation prior to 1999-2000 time limit to set off beyond 8 years due to post facto legislative amendment in Section 32(2)

Facts:

AO held in assessment that assessee cannot carry forward unabsorbed depreciation beyond 8 years as the amendment in Finance act, 2001 w.e.f. 1-4-2002 was not retrospective while CIT(A) allowed the stand of the assessee. On appeal by revenue -

Held in favour of the assessee that they were entitled to carry forward the unabsorbed depreciation beyond 8 years as the amendment in Finance act 2001 was read to be retrospective.

Applied:

General Motors India Pvt. Ltd., 2013 TaxPub(DT) 0624 (Guj-HC)

Harvey Heart Hospitals Ltd. v. ACIT 2021 TaxPub(DT) 0286 (Mad-HC)

CIT v. Sanmar Specialty Chemicals Ltd. 2020 TaxPub(DT) 3852 (Mad-HC)

Madras HC - TCA No. 236 of 2017 dated 20-7-2021 : 2021 TaxPub(DT) 3888 (Mad-HC) in the case of CIT v. M/s. Tamil Nadu Small Industries Corporation Ltd.

Ed. Note: In the ad interim years the unabsorbed depreciation was restricted for set off only to 8 years which itself was a redundant provision.

Case: Asstt. CIT v. Empee Sugars & Chemicals Ltd. 2023 TaxPub(DT) 1932 (Chen-Trib)