The assessee-firm, having ceased its business operations, earned short-term capital gains and sought to set off unabsorbed depreciation pertaining to AYs. 1996-97 to 2001-02 against these gains. The High Court held that the set-off was allowable. Following the decision in General Motors (India) (P.) Ltd v. Dy. CIT (2012) 25  taxmann. com 364 / 210 Taxman 20 (Mag.) (2013) 354 ITR 244 (Guj)(HC), the Court reasoned that the amendment to S. 32(2) by the Finance Act, 2001, removed the eight-year restriction for carry forward and set-off. This benefit extends to unabsorbed depreciation from pre-amendment years that was available as on 01.04.2002. Such depreciation becomes part of the current year’s allowance and can be set off against income under any head, including capital gains, in the absence of business profits. CBDT Circular No. 14 of 2001.  Followed PCIT v. Gunnebo India Pvt Ltd. ITA No. 1337 of 2016 dated 11th February 2019 (unreported)(Bom)(HC))  dismissed the appeal by following the judgment in General Motors India (P.) Ltd. (supra). Dy. CIT v. Times Guaranty Ltd. [IT Appeal Nos. 4947 and 4198(Mum) of 2008]  (AY. 2010-11)