Claiming deduction of unabsorbed depreciation before claiming exemption under Chapter VI-A

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..... Claiming deduction of unabsorbed depreciation before claiming exemption under Chapter VI-A - Commentaries / Editorials Dated:- 22-9-2008 - News - Income from business and profession is computed under .....

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..... section 29 of the Income Tax Act, 1961 . Depreciation u/s 32 is required to be deducted to calculate income from Business and to arrive at the Gross Total Income. But, whether unabsorbed dep .....

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..... reciation is also required to be deducted first to arrive at the correct Gross Total Income and to claim deduction under section 80HHC or Chapter VI A ? In the present case, assessee claimed deduct .....

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..... ion under section 80HHC before setting off the unabsorbed depreciation loss resulting into higher deduction under chapter VI-A. AO, reopened the assessment and disallowed the higher deduction. He .....

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..... allowed the deduction in re-assessment proceedings after setting off the unabsorbed depreciation. But, ITAT accepted the arguments of the assessee and allowed the deduction under Chapter VI-A befo .....

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..... re allowance of unabsorbed depreciation. Now, Madras High Court has rejected the view of ITAT and accepted the department plea that deduction under Chapter VI-A is available from Gross Total Incom .....

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..... e only after setting off of unabsorbed depreciation of earlier years. (For full text of judgment - visit 2008 -TMI - 30564 - MADRAS HIGH COURT ) - News - Press release - PIB Tax Management .....

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..... India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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