Carry forward of Unabsorbed depreciation

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Pawan Kumar Sharma (Querist)
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29 September 2010 Dear Sir, I know that Unabsorbed depreciation can be carried forward in future but my query is that suppose if I have 1,00,000 as unabsorbed dep. and my income for the year is 1,20,000. I wish to set-off only 70,000 in the from my income of 1.2 lac (though the full 1 lac is allowable as setoff)current year. Can I do so and carry forward the rest 30,000 to be set-off from future year income. Is there any caselaw in this regard.

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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29 September 2010 The unabsorbed depreciation brought forward shall be added to depreciation for the current year and entire depreciation is to be claimed in the current year only. There is no option to claim only a part of unabsorbed depreciation and carry forward the remaining balance.