unabsorbed depreciation

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sohail (Querist)

17 September 2009 my client (private conmpany) has sold a assest (land & building(wdv)) on which both short term and long term capital gain has incurred.and that company has unabsorbed depriciation from 1993-94,94-95,98-99,00-01,05-06,06-07,07-08,08-09
i wanted a clarification that all the unabsorbed derpiciation belong to above mentioned year can be set-off against current year LTCG & STCG.

If it is possible can u please give reference section & recent case laws and where it is mention in current income tax act

I have referred the Section 32, in that it has mention that we can set-off from any other head,i wanted to know that it includes LTCG ( because it is charged under sepcial rate that is 20%)

Please help me,

Late CA Sampat Jain

Late CA Sampat Jain (Expert)

17 September 2009 section 71(2) reads as under

(2) Where in respect of any assessment year, the net result of the computation under any head of income, other than â€œCapital gainsâ€, is a loss and the assessee has income assessable under the head â€œCapital gainsâ€, such loss may, subject to the provisions of this Chapter, be set off against his income, if any, assessable for that assessment year under any head of income including the head â€œCapital gainsâ€ (whether relating to short-term capital assets or any other capital assets

CA CHINTAN AJMERA

CA CHINTAN AJMERA (Expert)

18 September 2009 Agree

sohail

sohail (Querist)

18 September 2009 Thank you for your reply(sampat jain), sorry for troubling you again, can you please clarify whether any other capital assets as mentioned in the act includes long term capital assets & any recent case laws