Adjustment of loss

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vikas (Querist)

22 September 2016 The company has Loss under the head Business of Rs. 3,00,00,000 and during Scrutiny Assessments under section 143(3) of income tax an addition of Rs. 1,00,00,000 has been made as income under head other sources
I want to ask whether such loss can be adjusted against such addition
Please guide me with reference

CA Sumiit B Nagpal

CA Sumiit B Nagpal (Expert)

23 September 2016 If the business loss is of current year only for which the scrutiny has been made , then the same can be adjusted with income under the head other sources. However, if it is the brought forward loss the same can not be adjusted but will be carried forward to remaining no. of years(8 years in total).
However, if the addition is made under Section 68,69,69A etc. then no loss would be adjusted against such income. However, it is a matter of litigation and various Tribunals/Courts have different views on the same.

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