Assessing Officer denied set-off of brought forward unabsorbed depreciation from assessment year 2015-16 on the ground that no business was carried out during the relevant assessment year. CIT(A) affirmed the order of the Assessing Officer. On appeal, the Tribunal held that unabsorbed depreciation, by virtue of section 32(2), becomes the current year’s depreciation and can be set off against income under any head, including ‘income from other sources’. Tribunal also held that the requirement that business must be carried on during the relevant previous year is not a condition precedent for invoking section 32(2), nor does the absence of business income restrict such adjustment. Assessee was entitled to set off brought forward unabsorbed depreciation against income assessed for the year under consideration. (AY. 2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 32: Depreciation-Carry forward and set off-Unabsorbed depreciation as current year\u2019s depreciation-Set-off against income under any head, including income from other sources-Provision does not mandate that business be carried on in relevant year, nor limit adjustment to business income.[S. 32(2), 72] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-61099","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fTt","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=61099"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61099\/revisions"}],"predecessor-version":[{"id":61100,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61099\/revisions\/61100"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=61099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=61099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=61099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}