Income Tax

C.I.T. v. Handicraft Handloom Export Corporation (1982) Under section 70, if loss incurred by a wholly owned subsidiary company is reimbursed by the holding company, the subsidiary company cant carry forward and set-off the loss. Loss of subsidiary cant be set off with profit of holding company.

I agree with Mr. Vijay....................

Hi Friends,

For Indian Income Tax, Subsidiary and holding co. is a different assessee. and there is no section or provisions of tthe income tax act that provides for set off of losses of one  assessee to other assessee..

So u cannot set off of business loss of subsidiary with holding co. or vice versa

Regards,

Manoj

Both are different assessees for IT Department... so no set off is allowed.

Not possible.

Nowadays taxes are being imposed highly on everyday. this is good because people do not pay taxes.

Term Papers

no set off is allowed....

no set off is allowed......however even if the holding co does so,it will be added  for mat calculation purpose as per sec 115JB