Judgment :- C.N. Ramachandran Nair, J. These connected cases are filed by the same assessee against the common order of the Agricultural Income Tax Appellate Tribunal confirming the assessments for the assessment years 2001-02 & 2002-03. Assessee has been paying agricultural income tax under the system of compounding provided under Section 13(1) of the Agriculture Income Tax Act, 1991 up to the assessment year 2000-01. However, for the assessment year 2001-02, the assessee re-opted for regular assessment under Section 3 of the Act. While completing the assessment, the Assessing Officer declined depreciation on of machinery by applying Section 13 (6) of the Act. However, depreciation was granted for both the years on new assets purchased in the relevant previous years. There was no occasion to disallow carried forward loss, as assessee had not made any claim in terms of Section 13(6) of the Act. Challenge against the order of the Tribunal confirming the assessment is limited to disallowance of depreciation on old machinery, building, etc. 2. We have heard learned counsel appearing for petitioner and learned Government pleader. 3. In order to appreciate the contention raised by the petitioner, Section 13(6), which is the provision under which disallowance is made is extracted hereunder for easy reference. Section 13: Composition of Agricultural Income Tax (6) When any person who has been permitted to pay under sub section (1) repots to pay tax in accordance with section 3 notwithstanding anything contained in any other provisions of this Act, shall be assessed as if it were a new assessment and shall not be eligible to carry forward any loss incurred in any of the previous years or any depreciation. It is clear from the above provision that once an assessee, who has been paying tax under system of compounding under sub Section (1) of Section 13, repots to pay tax in accordance with sections 3, such assessee shall not be entitled to the benefit of carry forward of loss or any depreciation notwithstanding the other provisions of the Act otherwise providing for it. Learned counsel for the assessee contended that disability is only for carry forward loss and depreciation. Learned Government Pleader contended that there is an absolute ban under the provision from granting carry forward loss or depreciation. It is seen that similar disallowance on depreciation is made for old machinery, building etc. for both the assessment years. Learned counsel for the assessee contended that disability is only for carry forward loss and depreciation. Learned Government Pleader contended that there is an absolute ban under the provision from granting carry forward loss or depreciation. It is seen that similar disallowance on depreciation is made for old machinery, building etc. for both the assessment years. We are of the view that section 13(6) applies to the first year, in which the assessee repots for conversion from payment of tax under the compounding scheme, as provided under section 13(1), to payment of tax under Section 3 of the act. In other words, once option is exercised for one year and assessee suffers disability under Section 13 (6), the assessee will be entitled to carry forward loss and depreciation from that year onwards for succeeding assessment years as provided under Section 12 of the Act. For the next year onwards, i.e. 2002-03 onwards, if assessee continues to pay tax under Section 3, assessee is not subject to any disability under Section 13(6) of the Act. In other words, assessee will be entitled to carry forward of loss and depreciation to the immediately succeeding year i.e. the year following the year in which option is exercised for payment of tax under section 3 of the Act. Even though learned Government Pleader pointed out that option for payment of tax at compounding scheme under Section 13(1) is for three years, we do not think any such question arises here because the Tribunal has approved switching over from compounding to payment of tax on regular basis under Section 3 of the Act. We, therefore, dismiss the tax revision case for the assessment year 2001-02 but allow the revision for the year 2002-03 by holding that assessee will be entitled to carry forward of loss computed and unabsorbed depreciation, if any, from 2001-02 to that year. We make it clear that depreciation will be available only on new assets acquired during the previous year relevant for the assessment year 2001-02 onwards. In other words, no depreciation will be available on assets acquired prior to the previous year in which assessee switched over from compounding to payment of tax under Section 3 of the Act.