The Business Profits Act, 1947.
6. Relief on occurrence of deficiency of profits.-
Where a deficiency of profits
occurs in any chargeable accounting period in any
business, the taxable profits of the business shall be deemed to be reduced and relief
shall be granted in accordance with the following provisions:-
-
the aggregate amount of the taxable
profits for the previous chargeable accounting periods shall be deemed to be
reduced by the amount of the deficiency of profits and the amount of business
profits tax payable in respect thereof shall be deemed to be reduced
accordingly, and the relief necessary to give effect to the reduction shall be
given by repayment or otherwise;
-
where the amount of the deficiency
of profits exceeds the aggregate amount of the taxable profits for the previous
chargeable accounting periods or where there is no previous chargeable
accounting period, the balance of the deficiency of profits or the whole of the
deficiency, as the case may be, shall be applied in reducing any taxable profits
for the next subsequent chargeable accounting period, and if and so far as it
exceeds the amount of those profits, any taxable profits for the next subsequent
chargeable accounting period and so on.
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