Set off of Unabsorbed Depreciation

by Sudhir Khanolkar
(Kudal, Dist Sindhudurg, Maharashtra)

Can unabsorbed depreciation be set off against income in the nature of STCG on Depreciable Assets? Any case law is there?

Reply from M/s.V.Krishnan & Co.:

The Supreme Court in Virmani Industries Private Limited vs. CIT – 216 ITR 607, has categorically stated that the unabsorbed depreciation brought forward can be set-off against any other Head of Income. Hence, the unabsorbed depreciation can be set-off against income in the nature of STCGs on Depreciable Assets.