can loss from SEZ units allowed to be set off against profit of the non SEZ undertaking of same assessee and if yes the tax treatment of it .
DIPAL SHAH (PROPRIETOR) (61 Points)
29 December 2009can loss from SEZ units allowed to be set off against profit of the non SEZ undertaking of same assessee and if yes the tax treatment of it .
shailendra
(C.A. FINAL)
(189 Points)
Replied 29 December 2009
No
Any loss generated from a business whose income is exempt is considered as a dead loss. It means it will not be allowed against any other head of income.
Amir
(Learner)
(4016 Points)
Replied 29 December 2009
Dear Dipal,
As Shailendra rightly mentioned that Losses generated from a business whose income is EXEMPT is considered as a DEAD LOSS.
It is because of this very reason the words used in Sec 10 A,10AA, 10 B, etc is DEDUCTION & NOT EXEMPTION
Now, this means that the losses of these undertakings can be setoff / carried forward & se off..
As far as setting off with THE PROFITS OF NON SEZ units is concerened, IT IS 100% ALLOWED..Sec 70 and Sec 72 does not makes distinction between the losses incurred in the NATURE OF BUSINESS.
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