The Tribunal held that the assessee will be entitled for carry forward and set off of unabsorbed depreciation for A.Y. 2007-08 to 2012-13 and section 79 of the 1961 Act has no applicability so far as carry forward and set off of unabsorbed depreciation is concerned. The decision of Hon’ble Supreme Court is followed by the Tribunal. CIT v. Shri Shubhlaxmi Mills Ltd (2001) 249 ITR 795 (SC).The Tribunal held that no carry forward of losses for A.Y. 2007-08 to 2010-11 shall be allowed. In AY. 2012-13 there was no change in shareholding of the assessee company there will be no difficulty in allowing set off or carry forward further of losses for the assessment year 2011-12 to the succeeding years. ( AY.2012-13)
Dy. CIT v. Credila Financial Services (2018) 192 TTJ 511/64 ITR 324 / 166 DTR 58 (Mum.)(Trib.)
S. 79 : Carry forward and set off losses – Change in share holdings – Companies which public are not substantial interested – Unabsorbed depreciation-Business loss was not allowed to be carried forward for the AY. 2007 -08 to 2010-11 [ S.32 ]