No turnover, setting off of loss

This query is : Resolved

Guest

Guest (Querist)

02 August 2016 Dear experts,
There is no turnover in a year for a partnership firm. However there is interest on FD to the extent of Rs 300000/-. There are expenses like salary, electricity exp etc. So there will be a business loss . The question is can we set off this business loss with Income from other sources (bank interest) or carry it forward? [As there is no turnover, setting off seems difficult to me. Also, even if a small turnover is shown, 44AD audit will be needed.]
Please advise.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

02 August 2016 C/fd business loss can't be set off against IFOS. Inference - Section 72(1)(i).

Guest

Guest (Querist)

02 August 2016 Thanks a lot! that was helpful

Guest

Guest (Querist)

02 August 2016 Actually I was talking about current business loss( without turnover due to fixed overheards)

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

02 August 2016 Error is regretted.
Expenses incurred is not to earn income since turnover is zero. So inter head adjustment will be disallowed and c/fd also will be denied not being a business loss.

Message likes : 1 times