Amalgamation loss set-off conditions require production targets, verified reporting, and possible relaxation for genuine efforts.

Conditions for carrying forward or set-off of accumulated loss and unabsorbed depreciation allowance in amalgamation require the amalgamated company to achieve at least 50% of installed capacity within four years, maintain that level for five years, and furnish a verified certificate with the return of income. The Central Government may relax the production condition or time limit in suitable cases based on genuine efforts and preventing circumstances. Installed capacity means the production capacity existing on the date of amalgamation.

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