Loss of revenue due to incorrect allowance of depreciation : CBDT directs AOs to take immediate steps. - Income Tax - Instruction No. 09/2007

INSTRUCTION NO. 9/2007 Dated: September 11, 2007 I am directed to refer to the above subject. 2. Instances have come to the notice of the Board in which substantial loss of revenue has occurred due to incorrect allowance of depreciation and incorrect set off of brought forward losses. The Assessing Officers should, therefore, carry out necessary verifications at the time of undertaking scrutiny assessments with reference to physical records and the claims related to losses including unabsorbed depreciation should be linked with the assessment records so as to ensure correctness of the allowance of claims of brought forward losses and depreciation. Remedial action for earlier years, wherever necessary, should also be initiated. 3. This should be brought to the notice of all concerned for strict compliance. F.No.225/142/2007-ITA-II (Renu Jauhri) Director (ITA-II)