can unabsorbed depriciarion be set off if last year we fail

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HARDIK SHAH (Querist)
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01 February 2011 can depriciation loss be set off in this assessment year if we failed to claim carry forword in the last A.Y? In the case of one of my cliant return has been filed after due date so now there is no option to revise it. Can we clam brought forword & set off in this A.Y.? please help with decided case law if any.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 February 2011 To claim any set off is not made optional by law.
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By the operation of law, it is an automatic exercise which will take place, and does not depend upon the willingness of the assessee.
It's my personal view that, in the next return you may claim the balance amount, deeming that the set off provisions have been applied in the return of AY in question.

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Ratan Sharma

Ratan Sharma (Expert)
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01 February 2011 No I dont think so that you can claim the setoff of depreciation loss which you have not claimed in last year. It is not mandatory that you have to carry forward the loss in next year. If you have not claimed it then you are not entitled to claim the c/f. loss in next year. You have to claim the c/f of loss through return of income. However if the mistake has been occured inadvertantly and the time to revise your return of income expired you may request the A.O. to issue you notice u/s. 142 , in respose to which you may file fresh return claiming the c/f. of loss. Even if the A.O. does not provide the opportunity to file your return u/s. 142, You will get some ground to fight out in appeal. At the first stage of assessment I dont think so , you will get the deduction. At appeallate level you may succed on the ground of natural justice.

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Guest

Guest (Expert)

01 February 2011 Very much agree with Mr. Bafna

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