115 JB

hi ramees,,,,,,loss or dep whichever is less needs to be taken on cumulative basis   accordingly u can claim 1300000........and dont worry,i m sure abt my reply

Thank u Mr. Ronit... Can u Tell me Whether this loss is as per IT act or As per Books (ie. As per books of Accounts)........?

I Saw some of the discussion saying that the loss is as per IT act ....

Business loss is allowed to be carried forward upto 8 asst yr and Depreciation loss is allowed to be carried forward for indefinite period of time.

Therefore Rs.1300000 can be set off  U/S72 only under the head Profits and Gains of business or prof in the asst yr 2010-11,since it is brought forward losses.

B/f Depreciation loss can be set of only after setting of the brought forward business loss.B/F Depreciation U/S 32 can be set of against any other income other than salary income.

Therefore b/f unabsorbed depreciation Rs.1350000 can be set off against any other head of income other than salary income after setting of Business loss U/S72

As per Clause (iii) of Explanation to Section 115 JB amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of account, is to be reduced. The amount of loss or depreciation as per books would be one consolidated figure and above clause does not require determination of amount on year-to-year basis. [Amline Textiles Pvt. Ltd. vs. ITO (2009) 27 SOT 152 (Mum.)]

dude the loss shd be as per books of accounts as per sec 115JB

one thing i forgot to say..............the loss  or dep shd be as per books of accounts............and one more thing ,the term loss will not include depreciation