setoff business loss & Depreciation loss

[Dwarakanath sriknatiah]

I have both business loss and depreciation loss from 2002/03 on wards till 2007/08

Profits from the 2008/09 on wards.

Pl advice whether business loss to be adjusted against the profit first against carry forward losses first?

and  then to adjust depreciation loss?

[CAGOPALJI AGRAWAL]

Carried forward business loss is adjusted first before unabsorbed depreciation u/s 32(2).

[Jyoti Sahoo]

yes am agree with Mr.Gopaji.

AI Summary

Setoff of business loss: carried forward business loss is to be adjusted before unabsorbed depreciation under section 32(2).
Where a taxpayer has both carried forward business loss and unabsorbed depreciation, the carried forward business loss is to be adjusted first, followed by adjustment of unabsorbed depreciation under the depreciation provisions (u/s 32(2)).