Priority of set-off: brought forward business losses must be adjusted before unabsorbed depreciation; procedural safeguards required for invoking restrictions.

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....Priority of set-off: statutory treatment of unabsorbed depreciation as current year depreciation requires brought forward business losses to be adjusted first against business income, with unabsorbed depreciation usable only thereafter; AO directed to apply that order. Procedural requirement for invoking change in tax position: treating a later shareholding date to invoke a restriction on set-off amounted to enhancement of income and required issuance of an enhancement notice; denial of set-off on that ground was invalid for lack of such notice. Reversals and capital creditors: amounts voluntarily disallowed earlier and capital creditors for which no prior deduction was claimed are not taxable as income on write-back; related additions deleted.....