Ashwini krishnen (self) (48 Points)
25 September 2010Hi All,
If a company changes it its name and the object clause ( Nauture of business changed from previous business ) and the company has incurred losses for the last 2 years and in the current year the company posts profits ( Due to change of nature of business ) & ( The company is having the same directors ) and gains from Business can we off set the previous year losses.
Ashwini Krishnen ( IPCC )
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 25 September 2010
Dear Ashwini,
Sec.72 deals with carry froward and and set off of business income. As per the section, loss can be carried forward and set off even if the business in respect of which it was incurred and computed has been discontinued. Hence, in ur case, previous years losses can be set off aginst current year income
Sunshine
(Helping All)
(10575 Points)
Replied 25 September 2010
yes i agree....discontinued business loss can be carried forward...
Sharad Saini
(Student)
(286 Points)
Replied 25 September 2010
change in buss do not changes the assessee... the assessee is the same person than definatly set off nd carry forward is permissible.........
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 25 September 2010
losses from business can be set off even if business is discontinued..........
I AGREE WITH NARAYANAN
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