Set-off & Carry Forward of Losses

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2010 A Company files an Income Tax Return for the previous year which shows a Loss.This can be carry forward for a period of eight years.

In the current year,the Company starts another business of Hotel Operations which are eligible for Section 35AD deduction.

The question is can the losses of other Business be set off against the Profits of Hotel Business within the time frame of eight years?

CA Puneet Jethliya

CA Puneet Jethliya (Expert)
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27 July 2010 yes, loss from a non-speculative business can be set off against income from business specified under section 35AD.
but to be noted loss, computed in respect of any specified business referred to in section 35AD, cannot be set off against any other income.