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In case where profits are insufficient to absorb brought forward losses...

This question belongs to Commerce Income Tax And Corporate Tax
Income Tax and Corporate Tax
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In case where profits are insufficient to absorb brought forward losses, current depreciation and current business losses, the same should be deducted in the order
1. Current scientific research expenditure [Section 35(1)].
2. Current depreciation [Section 32(1)].
3. Brought forward business losses [Section 72(1)].
4. Unabsorbed depreciation [Section 32(2)].
5. Unabsorbed investment allowance [Section 32A(3)(b)].
6. Unabsorbed development allowance [Section 33A(2)(b)].
7. Unabsorbed family planning promotion expenditure [Section 36(1)(I)].
8. Unabsorbed scientific research capital expenditure [Section 35(4)].

Answer & Solution
Correct Answer: Option B
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