Unabsorbed business loss after discontinuance may be set off only against specified deemed business income. Set-off of unabsorbed business loss is allowed only where the business or profession has been discontinued, the loss arose in the cessation year, remains unabsorbed, and is not a speculation loss. The adjustment is confined to specified income arising after discontinuance, including deemed business income from remission or cessation, recovery of expenses, sale of scientific research assets, recovery of bad debts, and withdrawal from special reserve, but not balancing charge income.