Set off losses

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