Set off of Brought forward loss

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09 February 2011 In case I have brought forward business loss of 200,000 and this year my income from business is 260,000 and that is my only income, is it necessary to claim whole brought forward loss or only to the extent of 100,000 & can that remaining 100,000 be carried forward to subsequent years?

CA Parag G Bhuptani

CA Parag G Bhuptani (Expert)
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09 February 2011 No. As per decision B.C.S. Kartar Chit Fund and Finance Co. (P.) Ltd. v. CIT (1989)179 ITR, where losses sustained are not set off against the profits of the immediately succeeding year or years they cannot be set off against profits at a later date.

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Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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09 February 2011 You have to adjust full brought forward loss against the profit of the current year. It can not be adjusted partly if current year income allow to adjust fully.

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Guest

Guest (Expert)

09 February 2011 Adjust full brought forward loss against the profit of the current year

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