Carry forward of loss

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SHWETA GERA (Querist)
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02 August 2010 In the following cases whether the loss can be carry forward-
1.Loss of HUF where the business of the HUF has been takenover by one of its members
2.B/f loss of afirm succeeded by another firm
3.b/f loss of a proprietary bs takenover by a firm consisting of the sole proprietar as partner also
4.Partnership firm takenover by one or more partners

Please explain the provisions in detail. I am bit confused in sec.72A

Thankyou

srinath

srinath (Expert)
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02 August 2010 loss of retired or deceased partner shall not be allowed to be carried forward by the firm.... however for unabsorbed depreciation it is not applicable

business or profession loss of the predecessor shall not be set off in the hands of the successor unless the succession is by the way of legal inheritance

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SHWETA GERA

SHWETA GERA (Querist)
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02 August 2010 cn u explain me these provisions in detail and simple language i found these quite confusing in the manner explained in book

srinath

srinath (Expert)
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03 August 2010 brought forward loss of a firm can be taken over by another firm only if all the partners are same...

suppose the ealier firm has A B C D E as partners and they share profits and losses equally... loss is say rs. 5 lacs and in new firm A C F G are partners then loss of B and D ie Rs. 2 lacs cannot be carried forward. in other words only 3 lacs can be carried forward.

loss of sole prop can be carried forward by a firm if he is a partner in tat firm

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SHWETA GERA

SHWETA GERA (Querist)
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03 August 2010 Is provision in case of succession and takeover different/
What is the answer of case-1?

srinath

srinath (Expert)
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03 August 2010 other than succession by way of inheritance there cannot be any set off in case of individual and HUF....

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