Set off carry forward

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2012 Dear Sir,

Can the loss of any concern be set off against the profit of another concern.

e.g. whether loss of abc ltd. can be set of against the profit of xyz ltd.

please guide.

Chirag Chordia

Chirag Chordia (Expert)
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30 July 2012 in normal situation it can not be set off like this.....but in case of amalgamation and merger it can be set off provided some conditions have to be satisfied.

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2012
but there is no amalgamation or merger, still there is a loss of one concern is set off against the profit of another concern from past 3 years.

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neeraj

neeraj (Expert)
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30 July 2012 How is it possible ?

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2012 i don't know but they are doing this from last 3 years.

when i asked how they are doing this.

they have no answer.

is there any clause in income tax act?

Mohit Naithani

Mohit Naithani (Expert)
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31 July 2012 Yes loss or one business is to be set off agt Profit of another Business. But Loss from Speculation business is only set off agt Profit of Speculation Business,

Loss of non speculation business can be set off agt profit of any business income and profit of any other head (Except Salary Income), business loss can be carry forward upto 8 A.Y. and can be set off with same head while carry forward.