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Set off & carry forward of loss under it act

This query is : Resolved 

03 August 2012 One 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.

03 August 2012 No u cannot set off loss os ABC wirh XYZ.

03 August 2012 Dear Mr Aditya pls read sec 79 for once & let me know if any thing is possibe


03 August 2012 If merged then yes.

03 August 2012 by merger you mean merger by court or by subscription of 100% shares by XYZ

03 August 2012 merger by court. However the merger would be effective from a date to me mentioned in the merger.



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