BUSINESS LOSS ::

Last updated: 10 December 2007

Court :
HC

Brief :
Held by the Hon`ble Bench that section 71(2) allows an assessee to set off of business loss from income under any head including capital gains, further no sequence is prescribed for set off of losses, thus it is open to the assessee to set off the business loss against any head as is beneficial to him.

Citation :
Coated Fabrics P. Ltd. Vs. J.C.I.T.

Business Loss Coated Fabrics P. Ltd. Vs. J.C.I.T. 01/06/2006 (2006) 285 ITR 148 (Pune) Case Fact: Whether business loss suffered in a year is to first set off against Income from other sources or against the head income from capital gains? Decision: Held by the Hon`ble Bench that section 71(2) allows an assessee to set off of business loss from income under any head including capital gains, further no sequence is prescribed for set off of losses, thus it is open to the assessee to set off the business loss against any head as is beneficial to him.