Loss of defunct company

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2011 Friends,

Can a defunct having no income & only statutory dues such as ROC filing fees, audit fees, Profession tax as expenses claim such expenses as a loss in Return of Income?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 July 2011 Such expenditure,in the cited issue,is not spent for earning an income. Hence can't be claimed as business expenditure.

Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2011 Yes, I agree since loss is negative income & loss would mean negative income arising from a business activity. Here there is NIL income & expenses have no relation with any income earning activity, hence cannot be claimed as a business loss.
Are there any case laws in support of this contention?
Also what about carry forward of unabsorbed depreciation of such a defunct co?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 July 2011 Carried forward depreciation is as good as current year depreciation. So it can be carried forward.

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