Income Tax-Loss of Revenue due to incorrect depreciation-Board cautions
The CBDT has cautioned the Assessing Officers that substantial loss of revenue has occurred due to incorrect allowance of depreciation and incorrect set off of brought forward losses. Board wants AOs to carryout necessary verifications with reference to physical records to ensure correctness of the claims of brought forward losses and depreciation. Board wants remedial action for earlier years also.
CBDT INSTRUCTION No:9/2007 dated September 11, 2007