Guys URGENT help needed

Pratik Parekh (finance) (142 Points)

10 September 2009  

guys please help :

there is a limited company (unlisited), due to some financial problem there is no routine business since past few years but the fixed assets and current assets are in place. now the company has solved the problems and sold a capital assets. now the question :

 can the company set-off the capital gain with current year business loss or previous year business loss ?

because some have the opinion that since your sales are nil and the plant was shut down that means there is no business hence you cannot setoff the the current year or previous years business loss with capital gain as to set-off you need to have running business

 

guys your answers will be appreciated, if u have a case law or sections or notifications it can prove a great help to me !!!

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