02 March 2009
no. unabsorbed depriciation can be set-off against any income chargeable under the head profit and gains of business or profession or under anyother head (except income under the head "salary") section 32(2).
02 March 2009
Unabsorbed depreciation is an allowance and not a loss. Carried forward loss only is not permitted to setoff against salary income. In view of this, unabsorbed depreciation, not being a loss, can be set off against salary income.
02 March 2009
As per my knowledge, the very basic purpose for not allowing the set off of business loss from salary income was that, if it is allowed, prople will take undue benefit, the losses from small business could be shown and the salary income could be got setoff by all salaried class people. To curb such practices, these provisions came in to existence. If unabsorbed depreciation is allowed to be set off from Salary Income, the basic purpose of all will again defeat. So logically also it can not be allowed by the Income tax department.
16 March 2009
I AGREE WITH MR B CHACKRAPANI WARRIER. UNABSORBED DEPRECIATION IS ONLY AN ALLOWANCE. TERM LOSS IS NOT USED IN SEC 32(2). THE TERM USED IS ALLOWANCE. WHILE IN SECTION 71(2A) IT IS MENTIONED THAT WHERE THE NET RESULT OF COMPUTATION UNDER THE HEAD BUSINESS OR PROFESSION IS LOSS AND ASSESSEE IS HAVING SALARY INCOME SET OFF CANNOT BE DONE. THIS IS APPLICABLE ONLY FOR LOSS AND NOT FOR ALLOWANCE . HENCE 32(2) BEING AN ALLOWANCE IT CAN BE SET OFF AGAINST SALARY INCOME
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