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set off nd cary fwd doubt

itika mehra (articled assistant) (202 Points)

06 November 2010

Please tell me if we have unabsorbed depreciation than can it b set off against salary income???

And i need a reply that dis unabsorbed depreciation can it b set off against other incomes other income here i mean dat inter source adjustment can b done or not????

Please please post ur answers with proper reasons............

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Amit Kothari (Article Assistant/ PCC Student) (177 Points)
Replied 07 November 2010

Originally posted by : itika mehra
	Please tell me if we have unabsorbed depreciation than can it b set off against salary income??? And i need a reply that dis unabsorbed depreciation can it b set off against other incomes other income here i mean dat inter source adjustment can b done or not???? Please please post ur answers with proper reasons............

as per sec. 32(2) , Unabsprbed Depreciation can be set off against all heads except Salaries

so as per your doubt unabsorbed depreciation can be set off not only income under Profits and Gains but also against income under any other heads except 'SALARIES"

it can be set off even after business is discontinued...

well these are all affirmed aspects from Supreme Court Verdict in Virmani Industries Pvt. Ltd vs. CIT, 216 ITR 607. please refer if u can find the case!!

hope this must help you !

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Azim Khan ACA,CS,CMA*,LLB* (Proprietor) (1312 Points)
Replied 07 November 2010

Agreed with amit.....

swapnil (CA Final) (598 Points)
Replied 07 November 2010

good emplain by amit, keep sharing, and best of luck,

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 07 November 2010

good reply by amit

vipul jain (EFFORTS NEVER FAIL) (2894 Points)
Replied 07 November 2010

hello my friends.......

I respect ur answers nd read carefully ur answers......but according to my knowledge i share my point of view.....

According to section 71 LOSS under head "profits and gains of business or profession" cannot be set off against income under the head "salaries"... According to section 71 LOSS under the head "profits and gains of business or profession"is computed after providing for current year depreciation...thus, unabsorbed portion of current year depreciation cannot be set-off against income under the head "salaries". further, unabsorbed depreciation of past years is carried forward u/s 32(2), which again falls under the head "profis and gains of business or profession", therefore, the same cannot be set off against income under the head "salaries".... plz again share ur thoughts ...........

vipul jain.....

pinkcity..... jaipur

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(Guest)

Reply by Mr.Amit is correct.

Amit Kothari (Article Assistant/ PCC Student) (177 Points)
Replied 07 November 2010

Originally posted by : vipul jain
	hello my friends....... I respect ur answers nd read carefully ur answers......but according to my knowledge i share my point of view..... According to section 71 LOSS under head "profits and gains of business or profession" cannot be set off against income under the head "salaries"... According to section 71 LOSS under the head "profits and gains of business or profession"is computed after providing for current year depreciation...thus, unabsorbed portion of current year depreciation cannot be set-off against income under the head "salaries". further, unabsorbed depreciation of past years is carried forward u/s 32(2), which again falls under the head "profis and gains of business or profession", therefore, the same cannot be set off against income under the head "salaries".... plz again share ur thoughts ........... vipul jain..... pinkcity..... jaipur

i agree with you but the unabsorbed depreciation can be set off under other heads too except salaries !! and to itika mehra's insistence over providing reason.. u have given a worthy reason !!

thanks

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