Section 72AB - Provisions relating to carry forward and set off of accumulated loss and unabsorbed depreciation allowance in business reorganisation of co-operative banks

Carry forward and set off of accumulated loss allowed for successor co-operative banks subject to continuity and genuine reorganisation conditions.

Section 72AB allows a successor co-operative bank to set off and carry forward the accumulated loss and unabsorbed depreciation of a predecessor bank as if the reorganisation had not occurred, provided prescribed continuity and genuineness conditions are met by both predecessor and successor (including asset-holding and continuation of business). For demergers, allowable set-off is either directly attributable amounts or a proportionate share based on transferred assets. Non-compliance with conditions causes earlier set-offs to be treated as taxable income of the successor in the year of breach.