Treatment of accumulated losses in amalgamation: successor inherits predecessor losses subject to continuity and compliance conditions. Accumulated loss and unabsorbed depreciation of a predecessor are deemed the loss or allowance of the successor on amalgamation, demerger or specified business reorganisation and other set off and carry forward rules apply; strategic disinvestment amalgamations are capped at losses existing when public sector status ceased. Succession is conditional on pre and post transfer continuity of business and retention of substantial book value of fixed assets, failure of which causes previously allowed set offs or depreciation to be treated as the successor's income. Carryforward of deemed predecessor losses is subject to a statutory time limit.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Treatment of accumulated losses in amalgamation: successor inherits predecessor losses subject to continuity and compliance conditions.
Accumulated loss and unabsorbed depreciation of a predecessor are deemed the loss or allowance of the successor on amalgamation, demerger or specified business reorganisation and other set off and carry forward rules apply; strategic disinvestment amalgamations are capped at losses existing when public sector status ceased. Succession is conditional on pre and post transfer continuity of business and retention of substantial book value of fixed assets, failure of which causes previously allowed set offs or depreciation to be treated as the successor's income. Carryforward of deemed predecessor losses is subject to a statutory time limit.
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