See the attached computation

A very interesting Poser!!

Combines thr effect of Sections 32(2), 71 and 72.

Since 71 ( set off between heads of income within the same year does not make a difference between unabsorbed depreciation and loss, the bifurcation must be done after such inter head set off. in this case after the such set off, the entire loss that remains unabsorbed consists of the depreciation allowance only ( Depreciation under the IT Act being more than the residual loss). Therefore the entire amount is to be deemed as unabsorbed depreciation allownace and can be carried forward and set off without limitation of 8 years!