Section 79

Tax queries 2807 views 9 replies

Dear All,

Please let me know the unabsorbed loss includes unabsorbed depreciation also or not.

Replies (9)

NO

We must seperately disclose Unabsorbed Depriciation and Unabsorbed Business Loss / Loss in the return of Income

HI DEAR,

 

UNABSORBED LOSS DOESN'T INCLUDE UNABSORBED DEPRECIATION.

E.G. IF BUSINESS LOSS AFTER DEPRECIATION IS 10,00,000 AND DEPRECIATION FOR THE YEAR IS 4,00,000. THEN U'R UNABSORBED BUSINESS LOSS WOULD BE RS.6,00,000 AND UNABSORBED DEPRECIATION WOULD BE 4,00,000.

 

UNABSORNED BUSINESS LOSS SHOULD BE CARRIED FORWARD AND AVAILABLE FOR SET OFF FOR 8 ASSESSMENT YEAR WHEREAS NO TIME LIMIT HAS BEEN PRESCIBED FOR UNABSORBED DEPRECIATION.

 

THUS, U MST SEGREGATE UNABSORBED BUSINESS LOSS FROM UNABSORBED DEPRECIATION IN ORDER TO GET MAXIMUM BENEFIT

 

HOPE THIS CLEARS ALL U'R QUERIES,

 

REGARDS,

 

MANOJ

no, unabsorbed loss includes unabsorbed depreciation .

HI ABHISHEK,

 

WILL U PLEASE CONFIRM UNDER WAHT SECTION IT WRITTEN IN INCOME TAX ACT.

 

REGARDS,

 

MANOJ

It is under section 79, 

 where a change in shareholding has taken place in a previous year in the case of a company, not being a company in which the public are substantially interested, no loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year unless -  (a) On the last day of the previous year the shares of the company carrying not less than fifty-one per cent of the voting power were beneficially held by persons who beneficially held shares of the company carrying not less than fifty-one per cent of the voting power on the last day of the year or years in which the loss was incurred :

HI ABHISHEK,


AS PER SECTION 79, UNABSORBED LOSS DOESNOT INCLUDE  UNABSORBED DEPRECIATION. AS THE CARRY FORWARD OF UNABSORBED DEPRECIATION ALLOWANCE, CAPITAL EXPENDITURE ON SCIENTIFIC RESEARCH OR FAMILY PLANNING STANDS ALTOGETHER DIFFERENT FOOTINGS, THEIR CARRY FORWARD AND SET OFF ARE NOT GOVERNED BY SECTION 79. THIS WAS DECISION IN CASE OF FOLLOWING :

CIT VS. CONCORD INDUSTRIES LTD. (1979)

CIT VS. SHRI SUBULAXMI MILLS LTD. (2001)


REGARDS,


MANOJ

Originally posted by : N KRISHNA CHAITANYA

NO

We must seperately disclose Unabsorbed Depriciation and Unabsorbed Business Loss / Loss in the return of Income

It is under section 79, 

 where a change in shareholding has taken place in a previous year in the case of a company, not being a company in which the public are substantially interested, no loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year unless -  (a) On the last day of the previous year the shares of the company carrying not less than fifty-one per cent of the voting power were beneficially held by persons who beneficially held shares of the company carrying not less than fifty-one per cent of the voting power on the last day of the year or years in which the loss was incurred :

totally agree with Manoj. Abhishek pl check it out u r wrong

Carry forward of unabsorbed depreciation is governed by section 32.

While that of loss is by 79.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register