A partnership firm with 4 equal partners brought forward depreciation of ₹3 lakh and business loss of ₹3 lakh relating to assessment year 2014-15. On 1st April, 2014, two partners retired. The amount that assessee-firm c

CS Executive · Tax Laws and Practice · PYQS · December 2015
A partnership firm with 4 equal partners brought forward depreciation of ₹3 lakh and business loss of ₹3 lakh relating to assessment year 2014-15. On 1st April, 2014, two partners retired. The amount that assessee-firm can set-off against its income for the assessment year 2015-16 would be
(A) Unabsorbed depreciation of ₹3 lakh plus brought forward business loss of ₹3 lakh
(B) Unabsorbed depreciation 'nil' plus brought forward business loss ₹3 lakh
(C) Unabsorbed depreciation ₹3 lakh plus brought forward business loss 'nil'.
(D) Unabsorbed depreciation ₹3 lakh plus brought forward business loss of ₹1.50 lakh.

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Income Tax Act, 1961

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