Re. Unabsorbed Dep.

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shreekant (Querist)
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03 March 2009 Hi! Devanshi

Mr. V.K. Singhania and Mr. Girish Ahuja have there diff. pont pf view over this particular topic.Mr. Singhnia is not fevoring the taking of set off n Mr. Ahuja is in favour Wts the ????????????????

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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03 March 2009 Because section 32(2) says about allowance where as section 71(2) speaks about loss. So loss cannot be equated with allowanace. In other words loss is prohibited to set off against salary income but allowance does not, meaning thereby unabsorbed depreciation can be set off against salary income.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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03 March 2009 i refer taxmann`s direct taxes A.Y. 2008-2009. where in section 72 its writtern that carry forward of UNABSORBED DEP., CAPITAL EXP. ON SCIENTIFIC RESEARCH AND FAMILY PLANNING EXP. section 72 is NOT applicable these loss are governed by section 32(2). and under section 32(2) its writtern that DEPRECIATION ALLOWANCES first whould be deductible from income under the head Profit and gains if not fully deductible than other heads of income EXCEPT SALARY INCOME for the same AY and even still unabsorbed it can be carried forward and set off against any income in subsequent years EXCEPT SALARY INCOME with the following priority : current dep. brought forward business loss and then unabsorbed dep. Now if Mr. Girish Ahuja is of another opinion than i need to refer it but practically i think B. Chackrapani Warrier is right. v need to find some case laws on this topic.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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03 March 2009 this topic is still open for me

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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03 March 2009 https://www.taxworry.com/2008/10/carry-forward-adjustment-of-losses-in.html

here its writtern that unabsorb dep. cant not be set off against salary......n as mention by Mr.Tarun that Mr. ahuja has withdram than i dnt think that unabsorb dep. can be set off against salary income.

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