can we set off unabsorbed dep agAINST SALARY? SITE ANY CASE LAW IF POSSOIBLE?
7 Replies
(Guest)
The question of adjusting any loss with head of income 'salary' will arise with respect to loss from any other head only . Unabsorbed depreciation is not a head in itself . Therefore, adjusting unabsorbed depreciation ( which is not a Head ) with another head ´Salary´ will be without any basis of principal of aggregation of income and shall be defeating the income tax law itself .
Case Law :- decision of Mumbai Tribunal Chandrakumar v ACIT 189 TTJ 489 dt 20 November 2009
sandhya
(nil)
(58 Points)
Replied 26 June 2012
I think salary income doesnot setoff aganist any loss except loss from house property
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 26 June 2012
YES, we can take set off unabsorbed depreciation against SALARY INCOME...
This is exceptional case... This is governed by Section 32 and not by 71 and 72
refer link for more clarification
/experts/unabsorbed-depreciation-856740.asp#.T-mw1xf5DTU
also see attached copy ....
Regards,
Siddharth Bumb
sidbumbhelp @ gmail.com
Attached File : 261075 1003707 salary income vs unabsorbed depreciation set off bhumin.doc downloaded: 222 times
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 26 June 2012
@ Disha can yu elaborate to clarify ?
CA vaibhav
(no)
(111 Points)
Replied 26 June 2012
IN READY RECNOR IT HAS BEEN STATED SET OFF NOT ALLOWED AFTER AY 05-06.. PLZ STATE CASE LAW.AFTER AY 05-06
CA vaibhav
(no)
(111 Points)
Replied 26 June 2012
STILL NOT CLEAR ABOUY SET OFF .. KOI TO PAKKA SABUT DE DO
CA Karan Lodhi
(CA and B.com(hons.))
(879 Points)
Replied 27 June 2012
Unabsorbed depreciation of previous years can be set off against salary income for unlimited period of time. This is an exceptional case.
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