business losses

This query is : Resolved

milindkotak (Querist)
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23 April 2008 the asessee has incured loss besause the business activity was not carried on in the py. and expences has being incured also can depriciation can be charged is their is no business activity is being carried out . the ITO din't allowed that business losess to set of aginst income from other sourses and whole income from other sourse is taxed in ITO order

CA UMESHKUMAR R. ACHARYA

CA UMESHKUMAR R. ACHARYA (Expert)
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29 April 2008 dear millindji,

For allowance of Deprecaition it is not necessary to carry on business activity. more over I am not clear from query that whether you have closed business or suspended business activity .In the latter stage it is clear that you have continued business which canbe established by showing continuation of Sales tax Number, Payment of minimum Ele bill.Filing of Excise Returns etc.& You can also claim deprecation even your machinery & other assets are ready for use. ITO should have allowed business loss.
thank you