18 January 2010
Dear Sir, One of my friend started a factory 4 years back. But due to huge losses, he has shut down his business in F.Y. 2008-2009. He also hasn't submit the ITR for A.Y. 2009-2010. He sold all his assets in F.Y. 2008-2009 in loss. Now, Assessing Officer call for ITR & Accounts. Please tell me can he take benefit of Depreciation with business losses in F.Y. 2008-09 (A.Y.09-10) ?? He sold his assets (Plant, Machinery, Land, Building etc) in F.Y. 08-09. Please suggest.
18 January 2010
Please clear that which income/gain your friend wants to set-off with Depreciation or Business/losses.
If, he has another business income, then he can set-off depreciation amount but not business loss amount, Because business loss is available only for set-off if ITR filed on time, however this restriction is not applicable on UNABSORBED LOSS.
CAclubindia
