Sir,
In the case of my client,in the asstt.year 2011-12 Rs.7,00,000.00 appx. was disallowed on account of loss on sale and purchase of particular shares in the course of her business in trading in shares and demand was created. Transactions were made through Shares broker and all transactions were reflected in Bombay stock exchange for which all contract notes of sale and purchase of shares were produced before the assessing officer. My client is a trader in shares from last 20 years. There were so many transactions in numerous shares and on the closing of the FY the loss of the business was carried over to the subsequent year. Now my query is that if my client pays this demand to settle the litigation of this asstt. year, will she be allowed to carry forward the loss in the subsequent Years which she has done, otherwise she has to pay the taxes in the subsequent years also in which this loss has been given effect? Please advice me.
Regards