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Which of the following tax related decisions are important in case...

This question belongs to Commerce Income Tax And Corporate Tax
Income Tax and Corporate Tax
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Which of the following tax related decisions are important in case of shut down or continue decisions?
1. If the business is discontinued, the business losses and unabsorbed depreciation still can be carry forwarded and set off against profits and gains of business or profession. (in the case of unabsorbed depreciation - set off against income under any head)
2. The benefit of deductions under section 33AB (Tea Development Account/Coffee Development Account/Rubber Development Account) and 115VT (Reserve for shipping business) may be withdrawn and liable to tax for the year in which business is discontinued.
3. If the business is discontinued and the assets used for scientific research and family planning are sold, the selling price to the extent of deduction claimed shall be deemed as the profits of the previous year in which such assets are sold.
4. If a person is running more than one business the loss-making business should not be discontinued but operated in a minimal way so that the losses and expenses like retrenchment compensation, interest on borrowed funds, bad debts, etc. adjusted with profit making units.

Answer & Solution
Correct Answer: Option B
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