04 August 2009
can anybody provide me case laws for the effect of brought forward loss to be set off in next year? whether it is necessary to assess the blancesheet every year again to take set off of brought forward loss?
04 August 2009
Unabsorbed business losses in a previous year can be carried forward and set off against income of the subsequent previous year subject to the conditions mentioned in section 72 of the Income tax Act,1961.
Like wise the unabsorbed depreciation allowance can be carried forward to subsequent assessment years vide section 32(2) of the said act.
The act,on the issue, being very clear no need to search for case laws.
05 August 2009
Agree with Mr. Warrier, but want to add another point. Unabsorbed Depreciation can be carried forward indefinitely as per provision of Section 32 (2).
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