Set off of unabsorbed depreciation

NO... 

As per Section 32(2) :  Where, in the assessment of the assessee, full effect cannot be given to any allowance under sub-section (1) (i.e. depreciation) in any previous year, owing to there being no profits or gains chargeable for that previous year, or owing to the profits or gains chargeable being less than the allowance, then, subject to the provisions of sub-section (2) of section 72 and sub-section (3) of section 73, the allowance or the part of the allowance to which effect has not been given, as the case may be, shall be added to the amount of the allowance for depreciation for the following previous year and deemed to be part of that allowance, or if there is no such allowance for that previous year, be deemed to be the allowance for that previous year, and so on for the succeeding previous years.

From reading of the above, it can be seen that Unabsorbed depreciation cannot be deferred for set off.

Thank You.