Set off urgent

Under section 73A, any loss of a “specified business” (under section 35AD) is allowed set-off against profit and gains of any other “specified business”. In order to remove any ambiguity in this regardin respect of the business of hotels and hospitals, it is proposed to remove the word “new” from the definition of “specified business” in the case of hotels and hospitals under section 35AD(8)(c). With this, theloss of an assessee on account of a “specified business” claiming deduction under section 35AD would be allowed to be set off against the profit of another “specified business” under section 73A, whether or not the latter is eligible for deduction under section 35AD. Therefore, an assessee who currently operates a hospital or a hotel would be able to set off the profits of such business against the losses, if any, of anew hospital or new hotel which begins to operate after 1^st April, 2010 and which is eligible for deduction of expenditure under section 35AD.