Loss of LLP on dissolution

[bhagyashree sathe]

One LLP incurring business loss of about 8 to 10 Lakhs of Rs, is being wound up.

Will this business loss be allowed to set off in the hands partners[ designated and others] agianst their business income?

Orelse could this be allowed as loss on account of investment in LLP?

Seeking for sections/rules under Income tax Act, opinion or article if any.

[Vivek Harsh]

 

In my view loss shall not be allowed in hands of partners.

AI Summary

Loss treatment for LLP dissolution: LLP business loss generally not allowable as deductible loss in partners' hands.
The inquiry asked if an LLP's accumulated business loss on winding up can be set off by partners against their business income or treated as an investment loss; the forum reply stated that the LLP's loss is not allowable in the hands of the partners, implying it does not transfer as a deductible partner-level loss on dissolution.