IN MAT lower of unabsorbed depreciation & business loss is eligible for set off. This comparision is to be made yearwise b/w loss & depreciation or b/w total unabsorbed depreciaton & total business loss.
If year wise comparision is done then deduction wud be 30000 of dep of AY 07-08 & 15000 business loss of AY08-09. Total Rs. 45000
And if total dep. & loss is compared then deduction wud b Rs. 65000 of business loss.
What is the correct way???
If possible, also give reference of any case law, notification or guidance note.
25 January 2013
amount of brought forward loss or unabsorbed depreciation whichever is less” in clause (iii) shows the intention of the legislature for considering one consolidated figure of brought forward loss or unabsorbed depreciation for the earlier years in totality and not on year to Year basis, the logic is also approved in the case of amine textiles
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