SET-OFF AND CARRY FORWARD OF LOSSES
Set-off of losses means setting-off losses against the income of
the similar year. Where it is not possible to set-off the losses
throughout the similar assessment year in which they occurred
so much of the loss as has not been so set-off out of sure
specified losses can be accepted forward for being set-off
against his income in the succeeding years provided the losses
have been determined in pursuance of a return filed through
the assessee within the time allowed uls 139(1) or within such
further time as may be allowed through the Assessing Officer
and it is the similar assessee who sustained the loss and the
business is continuing.
Inter-Source Adjustment
Where there is more than one source of income under the
similar head, the loss from one or more sources is allowed to be
set-off against the income from the other sources. It meaqs
that where the net result for any assessment year in respect of
any source falling under any head of income is a loss, the
assessee shall be entitled to have the amount of such loss set-
off against the income from any other source under the similar
head. This is described inter-source adjustment. For instance,
suppose an assessee has four house properties. Three of them
yield net taxable income; but from the fourth there is net loss.
The assessee can set off the loss of one house property against
