Dismissing the appeal of the revenue the Tribunal held that unabsorbed depreciation for earlier years upto AY 2001-02 would become the depreciation for AY 2002-03. And as per the amendment to section 32(2) of the Act by FA 2001, this unabsorbed depreciation for AY 2002-03 would be carried forward for subsequent years and be set-off against income of the future years without any time limit instead of the alleged time limit of 8 years. Followed General Motors India Pvt. Ltd. v. DCIT ( 2013) 354 ITR 244 (Guj)(HC) (AY. 2006-07)
ACIT v. Panchmahal Steel Ltd. (2018) 64 ITR 49 (Ahd.)(Trib)
S. 32 : Depreciation-Set-off of Unabsorbed depreciation – Any unabsorbed depreciation available on 01.04.2002 i.e AY 2002-03 would be carried forward as per amended provisions of 32(2) of the Act without any time limit. [ S.32(2)]