Depreciation

RAJESH CHOUDHARY (Querist) 13 September 2012 This query is : Resolved
Respected Experts,
In the Previous year 2010-11 the partners of a firm purchased windmills in their individual capacity and claimed depreciation at 80% in their individual returns.After claiming depreciation, partners incurred loss and resulted in unabsorbed depreciation. In the beginning of the next year, the windmills were sold to a company as the partners discontinued windmill business. The query is whether the partners can set off unabsorbed depreciation with other income in the year of sale of windmill, since it is in the nature of discontinued business. thanks...

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J K Agrawal (Expert) 15 September 2012
Partners in their individual capacity can set off losses with income of other business in the same year.

RAJESH CHOUDHARY (Querist) 15 September 2012
sir thanks for the reply ...can u tell me by virtue of which section of the Income tax act, can the partners adjust unabsorbed depreciation with income from other sources, or any case law is available to support this stand...

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