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<h1>Section 35AD: Losses of specified business may only be set off against profits of other specified businesses, carried forward</h1> Losses attributable to a specified business under section 35AD may be set off only against profits of other specified businesses; they cannot be set off against income from non-specified sources. Any portion of such loss not so set off, or the entire loss if there is no income from any other specified business, is carried forward to the next assessment year and may be set off against profits of specified businesses in that year. Any remaining unabsorbed loss is carried forward year to year until fully set off.