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Set off of losses of firms for the assessment year 1993-94--Interpretation of the new section 75 of the Income-tax Act, 1961
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....ommissioners of Income-tax. All Directors-General of Income-tax. Sir, With effect from the assessment year 1993-94 a new procedure for taxation of firms has been introduced according to which the distinction between registered and unregistered firms has been done away with. Consequently the requirement of apportionment of losses among the partners for set off and carry forward has also be....
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....siness losses brought forward are permitted to be set off only against the income under the head "Profits and gains of business or profession", and, that too, only if the business in respect of which the losses were incurred continues to be carried on in the year of set off. 3. A plain reading of section 75 shows that the losses which remain unabsorbed in the hands of the partners "shall be all....