can unabsorbed depreciation loss set off against salary income
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Set off losses
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No, in my view, it cannot be set off against salaries.
Unabsorbed depreciation is covered under section 32(2) and business loss is covered u/s 71(2A).
U/s 71(2A) business loss cannot be set off against salaries. u/s 32(2) unabsorbed depreciation is to be treated as current year's depreciation. Finally, even current depreciation forms a part of business loss/ profit.
Chennai ITAT in the case of Chandrakumar vs. ACIT (129 TTJ 489) has disallowed the set off unabsorbed depreciation against the salary income.
see link below.
https://wirc-icai.org/wirc_referencer/income%20tax%20&%20wealth%20tax/Set%20Off%20And%20Carry%20Forward%20of%20Losses.htm
No, business loss cannot be set off with the head income from salary
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