Limited Manufacturing Company
During scrutiny for the AY 2010-11 the ITO writes:
" In the computation of total income, you had claimed set off of brought forward unabsorbed depreciation of the A.Y. 1992-93 of Rs. 3,86,340/-. But as per provision of Sec. 32(2), the unabsorbed depreciation for A.Y. 1992-93 can be carried forward upto 8(eight) succeeding years i.e. A.Y. 2001-02 only. Similarly, unabsorbed depreciation for the A.Y. 1992-93, 1995-96 and 2001-02 can be set off upto the A.Y. 2000-01, 2003-03 and 2009-10 only. In view of above, you are requested to explain as to why above mentioned set off of unabsorbed depreciation should not be disallowed."
Kindly advise if the ITO is correct ?
CAclubindia
