Doubt on setting off losses

A person is having a speculative income of say Rs.800000, he is having a carry forward business loss of Rs.500000,

Can anyone tell me whether this can be set-off, I know that the speculative business income can be set-off for the same year Ordinary Business Loss but i dont know whether the same could be for the carry forward business loss. It is given in the text  book that the carry forward business loss can be set off only against business income. But it is not mentioned as Ordinary Business Income.

Could any one please give me a confident answer because this is for a real situation to file the IT Return.

if the loss is of the same year it can be set off against any business income. but if it is a carry forward loss then , it can be set off against the income of only that busineess in which that loss has been incurred

Sec. 72 provides that Business loss other than speculation loss to the extent not set off under sec.71 shall be carried forward to the next A.Y and set off against the income under the head PGBP of the next A.Y.

 

So in my view, brought forward Business loss can be allowed to be set off against Speculative income since it fall under the same head of PGBP and no exception mentioned for it

Originally posted by : vijay bhasker kondapally
	if the loss is of the same year it can be set off against any business income. but if it is a carry forward loss then , it can be set off against the income of only that busineess in which that loss has been incurred

Correcting Vijay Bhasker

Please note that:

1) Current year business loss can be set off against current year Speculative income, and

2) It is not necessary that the loss should be set off against the PGBP of the business in relation to which the loss was incurred.

Thank you  For Sharing Doubt Clarified!