Carry forward of losses: firm barred from carrying losses exceeding retiring or deceased partner's profit share. Carry forward and set-off of losses is available only to the firm. If a partner retires or dies, the firm cannot carry forward and set off that portion of losses attributable to the retiring or deceased partner which exceeds that partner's share of profits for the previous year. This rule covers losses under any head of income. The restriction does not apply on admission of a new partner or where only the profit sharing ratio changes among continuing partners. Unabsorbed depreciation remains carry forwardable notwithstanding retirement or death.