suman (Auditor ) (388 Points)
03 August 2012One Co "ABC" has opened it's operation last year only & posted loss of Rs 8 crores. ABC is 100% subsidiary of "XYZ" which is a profit making company.
Can XYZ claim loss of ABC in its computation in income tax if yes pls also refer sections of it act also.
Ankit
(CA, CS)
(3064 Points)
Replied 03 August 2012
no. the two are separate companies. clubbing does not apply to a company.
Ravi Shankar Dubey
(zindagi ek sangharsh)
(100 Points)
Replied 03 August 2012
Separate legal entity. ABC Co Loss cannot setup XYZ co Profit.
Prateek Jayachandra
(Tax & Audit Professional)
(49 Points)
Replied 03 August 2012
The only way XYZ can set off ABC's losses is if it amalagamtes with ABC. Then u/s 72 the losses & depreciation can be set off for upto 8 years from date of amalgamation & indefinitely respectively.
But in your case since the company was started last year, the intention would be to pursue long term business objectives. Hence, amalgamation might not be agreeable by the company.
Gunjan Tulsyan
(Article)
(222 Points)
Replied 05 August 2012
NO WAYS how can one company claim the loss incurred by some other company....until n unless it amalgamates as it is mentioned by prateek above it should be the only way to claim the loss and depreciation as well
Archana Das
(CA Final student)
(622 Points)
Replied 05 August 2012
| Originally posted by : Prateek Jayachandra | ||
 |
The only way XYZ can set off ABC's losses is if it amalagamtes with ABC. Then u/s 72 the losses & depreciation can be set off for upto 8 years from date of amalgamation & indefinitely respectively. But in your case since the company was started last year, the intention would be to pursue long term business objectives. Hence, amalgamation might not be agreeable by the company. |
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