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Business loss

S K RAWOOL (CA Practice ) (31 Points)

22 July 2015

One our Client has no sales purchase in FY 2014-15.Only expenses are debited to P/L because of which company is having losses.This Business Loss is getting setoff against Capital Gains for sale os office furniture.Whether the company can claim such losses even if there is no sale purchase?The company is shutting down in FY 2015-16.

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Rajagopalakrishnan R (PARTNER) (1422 Points)
Replied 22 July 2015

As long as the expenses are legitatimate business expenditure incurred to keep the company running (i.e not expenditure to wind up or close down the company), they can be claimed as business loss and set off against permissible incomes.