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Income Tax

heemansoo srivastava (audit executive) (30 Points)

04 September 2010

could we set off the losses of 100% subsidiary with the profit of holding company. please answer with proper sections,cases or circulars

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9 Replies

Vijay gandhi (consultant) (567 Points)
Replied 04 September 2010

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.

CA Final (CA Final Student) (856 Points)
Replied 04 September 2010

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

Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 04 September 2010

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

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Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8310 Points)
Replied 04 September 2010

Originally posted by : Manoj B. Gavali
	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