Set off of losses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 February 2015 A pvt. ltd. co. is having the income from house property and income from other sources.
The said company is making payments for various expenses such as directors remuneration, salaries to staff, conveyance and other statutory taxes such as profession tax, roc filing fees, etc. as such there is loss under the head business income.

Whether the said business loss is not allowed to setoff from income from H.P. and other sources.

Please also provide the case law in case of non-allowance of setoff of losses.

Thanks in advance.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 February 2015 The referred expenses will not not be considered as 'business expenditure' since there is no receipts from business meaning thereby ,they will be treated as not incurred for earning income from business. Hence the end result under the head PGBP is zero and the question of set off becomes infructuous.

Ps:- I have no citation.

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Rupesh Jain

Rupesh Jain (Expert)
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14 February 2015 you have not mention the sources of income from other soruces.
and salary to staff given for what work. you have to sett off the exp. against the income .

pls wait you other expert opinion.

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