INCOME TAX ACT, 1961

Section 32(2)

Depreciation (Unabsorbed depreciation) - Carry forward and set-off - Computation of eight years period -

Revenue challenged the order of Tribunal allowing set off of unabsorbed depreciation of prior periods against long-term capital gain without properly appreciating the legal provision as laid down by section 71 as per which, brought forward loss cannot be set off against income from capital gain. Held: Unabsorbed depreciation pertaining to assessment year 1997-98 could be allowed to be carried forward and set off after a period of eight years without any limit, whatsoever, in accordance with section 32(2) as amended by Finance Act, 2001.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

INCOME TAX ACT, 1961

Section 32

SUBSCRIBE FOR FULL CONTENT