Business Loss

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2010 I had loss (Business)in last year which i carried forward to this year. Now in this year I have profit but very low.
I do not want to set off my carried forward loss against this year's profit and want to carry forward. Is it ok in income tax?

CA Sanat Pyne

CA Sanat Pyne (Expert)
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27 August 2010 no .If there is any profit then you have to adjust with carry forward loss .

Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2010 Sir, can you tell me where it is mentioned?

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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27 August 2010 Assessee does not have any option - Section 72 provides for carry forward of loss only when such loss cannot be set off against income under any other head. Under the Act, there is no provision which give option to the assessee to show the profit as income from one source and carry forward the loss from another source of income to the next year - CIT v. Milling Trading Co. (P.) Ltd. [1994] 76 Taxman 389 (Guj.).