The reassessment notice was issued on the ground that as per section 72 of the Income-tax Act 1961 no business loss can be carried forward and set off against any other heads of income except income under the head of business or profession for more than eight assessment years  immediately succeeding the assessment year for which the loss was first computed. Further as per section 32 of the Income-tax Act, 1961, unabsorbed depreciation can be carried forward for set off against any income under any head for a maximum period of eight years starting from AY. 1997-98.i.e. up to A.Y. 2004-05. The  Assessing Officer has relied upon the order of the special Bench of the ITAT in the case of DCIT v. Times Guaranty Limited  (2010) 4 ITR 210/ 131 TTJ 257 (SB) (Mum.)(Trib.) to form an opinion that Petitioner’s income has escaped assessment.   On writ the Court held that order of ITAT is dated 30th June, 2010 but the assessment of the Petitioner under section 143(3) of the Act was completed on 27th December, 2010. Therefore, this is a clear case of change of opinion. Further, the order of ITAT has not been accepted by the Gujarat High Court in General Motors India (P) Ltd. v. DCIT (2012) 25 taxmann.com 364 (Guj)(HC)  and Bombay High Court in PCIT v. Supreme Petrochem Ltd (ITA No. 661 of 2017 dt. 7-6-2019   (WP. No. 1215 of 2014, dt. 10-2-22) (AY. 2008-2009)

Morarjee Textiles v. ACIT (Bom.)(HC)(UR)