Loss in derivative business is a business loss eligible to set off against business profit: Kerala HC

PCIT Vs Dewa Projects Pvt Ltd (Kerala High Court) Kerala High Court held that a loss in the derivative business is a business loss for the purposes of Section 72, and thus a set off of such business loss would have to be permitted against profits and gains of business. Facts- The respondent/assessee is a company engaged in property development and is currently under liquidation. During the previous year relevant to the assessment year 2007-08, the assessee had returned business income in connection with its property business but had also netted off a loss of Rs.803.03 lakhs, which was the carr...