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2015 (11) TMI 587 - AT - Income TaxDepreciation of earlier year was not allowed to be set off against the income offered as unexplained cash deposit made in the account of axis bank - Held that:- As decided in Chandra Kumar v. ACIT [2009 (11) TMI 549 - ITAT MADRAS-A] according to section 71(2A) of the Act, if the net result of computation of income under the head “Profits and gains of business or profession” is a loss, then a set-off of such loss cannot be made against income assessable under the head “Salaries”. Once unabsorbed depreciation us considered as part of current depreciation, the net result of computation under the head “Profits and gains of business or profession” for any given year would be inclusive of such unabsorbed depreciation. Any loss as a result of such computation whether on account of unabsorbed depreciation or not would not be susceptible to set off against income under the had “Salaries” on account of the specific bar contained in sub-section(2A) of section 71 of the Act. Neither section 72 nor section 32(2) of the Act would in any way affect the inter-head adjustments specified under section 71 of the Act nor the application of specific bar contained under subsection (2A) thereof.Assessing Officer as well as the Commissioner(Appeals) were justified in disallowing set off of unabsorbed depreciation from earlier years against salary income. Accordingly, we are of the opinion that the CIT(A) is justified in disallowing set off of unabsorbed depreciation from earlier years against income from other sources. - Decided against assessee.
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