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Carry forward of losses/ depriciation

Tax queries 751 views 5 replies

a company has loss return but did not file return on or before due date.

as per provisions lossis not allowed to be carried forward.

my querry is whether the unabsorbed depriciation is allowable for carry forward

since depriciation is a charge on asset

Replies (5)
Yes it can be. S 80 which disallows carry forward of losses overrides chapter vi & disallows losses under s 72,73,74,74a if return is not as per 139(3) which says return should be filed u/s 139(1) . Deprecation is carried forward u/s 32(2) so its not over ridden by s 80 FURTHER there is no requirement in 32(2)for filing return in order to carry forward of deprecation hence carry forward is allowed There are few case laws also in this regards

As per section 80 of income tax Unabsorebed depereciation and losses from house property can be carried forwarded even if ROI not filled within due date.

Yes Depn can be carried fwd. As Z rightly said it is carried fwd u/s 32(2) n there is no such requirement to file d return within due date.
The answer given by Z is absolutely correct, section 32(2) is the governing section of set off & c/f of unsubscribed depreciation. It can be carried forward & set off,even if the return is filed after the due date of filing of return or the return is not filed at all. The only condition is that the assessee who claimed depreciation and the assessee who wants to carry forward the depreciation must be the same. However there a few exceptions to this condition too. But the facts of your question do not seem to be the case of change assessee,hence, the answer to your question is affirmative,i.e. Yes.
Sorry for the typing error, it's unabsorbed in place of unsubscribed in the first sentence.


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