Unabsorbed depreciation can be carried forward even if ITR has not been filed as per Due date

IN INCOME TAX APPELLATE TRIBUNAL

The Relevant Text of the Order as follows :

9. We have carefully considered the rival contentions and perused the orders of the lower authorities. The facts are very clear that the assessee filed return on 02.01.2013, which is beyond the due date prescribed u/s 139(1) of the Act. In the return of income the assessee has declared loss of Rs. 73,56,15,769/- consisting of business loss for the year of Rs. 69,18,94,858/- and unabsorbed depreciation of Rs. 4,37,20,911/-. As per the provision of section 139(3) to carry forward business loss u/s 72(1), assessee should have filed its return of income in time allowed u/s 139(1) of the Act.

However, the above condition does not apply in case of unabsorbed depreciation in view of the provision of section 32(2) of the Act. The ld AO has correctly held that business loss of Rs. 69,18,94,858/- is not allowable to be carried forward and has allowed Rs. 4,37,20,911/- being unabsorbed depreciation to be carried forward. The ld CIT (A) clearly referred to the provision of section 80 also The ld CIT (A) has also upheld the same view. In view of this, we do not find any infirmity in the order of the ld CIT (A) on this issue. The order of the ld CIT (A) is reasoned one and in accordance with the law. Accordingly, both the grounds of appeal raised by the ld AO are dismissed.