03 January 2012
Suppose Total Loss is Rs. 100 after claiming of Depreciation of Rs. 20, then business loss will be rs. 80 and ubabsorbed depreciation will be rs. 100.
Further if total loss is rs. 100 after claiming of depreciation of rs. 120 then unabsorbed depreciation will be rs. 100.
20 April 2019
Whether AO can challenge the view taken by assessee in the above two examples?
Eg 1. Business profit before depreciation Rs. 100 lakhs. Depreciation Rs. 150 lakhs, In this if AO argue that the remaining loss of 50 shall be business loss and not unabsorbed depreciation?
I agree that the remaining 50 shall be considered as unabsorbed depreciation, however what shall be the supporting? any case law or accounting principle?