Unabsorbed depri and speculative income

Vivek Trivedi (25 Points)

15 November 2021  

case 1) Normal business income 10,000 Speculative income 2,00,000 Depriciation 15,000 COI shows as 5000(10000-15000) is set off against 200000 and net income 195000 which means depri which remains unabsorbed by normal B&P can be set off against speculative

case 2) speculative income only - 2,00,000 depri - 15000 COI shows as 200000 which means that depri cannot be set off against speculative income

what is correct ? can depri be set off against speculative income ? if no then why is it set off as in case 1 if yes then why is it not set off as in case 2