Chartered Accountant
47 Points
Joined July 2008
Dear Ishan Jain,
The distinction between sec.32(2) and sec.72 is "only" with respect to carry forward of the unabsorbed depreciation and business loss over given number of years and that it does not govern set off.
Further unabsorbed depreciation was never considered as something that does not fall under profits and gains of business.
Hence for the purpose of provision of sec. 71(2A) loss under the head PGBP would also cover the unabsorbed depreciation - hence unabsorbed depreciation could not be set off agains the income from salary.
Further, Chennai ITAT in the case of Chandrakumar vs. ACIT (129 TTJ 489) has disallowed the set off unabsorbed depreciation against the salary income.
Regards.