Mukesh Bhaiya (Manager- Accounts) (119 Points)
18 June 2011Can anyone explain me why cant we set off the carried forward losses under section 10A after a period of 10 years exemption with the total income from the year in which section 10A is not applicable.
Thanks.
Viren
(Chartered Accountant)
(137 Points)
Replied 20 June 2011
The Set off is allowed but after making a deduction u/s 10A since sec 10A is not within chapter VI A of IT Act, the deduction is granted before GTI and then set off of losses possible.
[Synco Industries Pvt.Ltd (SC)]
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 20 June 2011
when you have loss under 10A, it becomes normal business loss. the characteristics of special provision of section 10A is lost. therefore business loss provisions will be applicable. hence inability to set off after 10 years.
Rajnikant Vadigoppula
(CA, CS And CMA Final)
(919 Points)
Replied 20 June 2011
i agree with both views
CAclubindia
