10 September 2010
one of our clients is a partnership concern and the firm has been suffering losses for the past few years and as such has decided to shut shop. The firm has a brought forward loss of nearly 21 Lakhs and the query I have is whether this loss upon dissolution can be carried forward and adjusted against the incomes of the partners in their personal capacity.. If yes what is the period of carry forward allowed and if no the reason and relevant section for the same..
11 September 2010
Because this loss has been incurred by the partnership firm therefore only firm is eligible to claim that loss by partners in their personal capacity.
Therefore, all loss will be lapse in case of partnership dissolved.
CAclubindia
