The business of Anant & Co. was discontinued in the year 2017-18 due to heavy floods in the area that destroyed its machinery. The business sustained heavy losses. The assessee was able to revive the business in the Financial year 2020-21. It could not earn any profits from this business but his other businesses were profitable. Can he set off the losses of revived business For how many subsequent years can he carry forward unabsorbed loss
A. He can set off loss against income from other business and carry forward unabsorbed loss up to A.Y. 2029-30, provided the business is now continued.
B. He can set off loss against income from other business and carry forward unabsorbed loss up to A.Y. 2029-30, whether the business is continued or not.
C. He can set off loss against income from other business and carry forward unabsorbed loss up to A.Y.2028- 29, provided the business is now continued.
D. The loss cannot be set off against income of any other business but can be carried forward up to A.Y. 2029- 30.
Answer:A
The business of Anant & Co. was discontinued in the year 2017-18 due to heavy floods in the area that destroyed its machinery. The business sustained heavy losses. The assessee was able to revive the business in the Financial year 2020-21. It could not earn any profits from this business but his other businesses were profitable. Can he set off the losses of revived business For how many subsequent years can he carry forward unabsorbed loss
A. He can set off loss against income from other business and carry forward unabsorbed loss up to A.Y. 2029-30, provided the business is now continued. B. He can set off loss against income from other business and carry forward unabsorbed loss up to A.Y. 2029-30, whether the business is continued or not. C. He can set off loss against income from other business and carry forward unabsorbed loss up to A.Y.2028- 29, provided the business is now continued. D. The loss cannot be set off against income of any other business but can be carried forward up to A.Y. 2029- 30.