Amalgamation conditions: transfer of accumulated losses and unabsorbed depreciation allowed only with continuity and asset-retention safeguards. Amendment to section 72A deems the accumulated loss and unabsorbed depreciation of an amalgamating company to be the loss or depreciation allowance of the amalgamated company upon amalgamation of specified industrial undertakings or certain banking companies, subject to conditions: the transferor must have engaged in the relevant business for a minimum period and retained a substantial portion of fixed asset book value as compared to two years earlier; the transferee must retain transferred fixed assets and continue the business for a minimum period and satisfy other prescribed conditions; and a definition of 'specified bank' is added.
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Provisions expressly mentioned in the judgment/order text.
Amalgamation conditions: transfer of accumulated losses and unabsorbed depreciation allowed only with continuity and asset-retention safeguards.
Amendment to section 72A deems the accumulated loss and unabsorbed depreciation of an amalgamating company to be the loss or depreciation allowance of the amalgamated company upon amalgamation of specified industrial undertakings or certain banking companies, subject to conditions: the transferor must have engaged in the relevant business for a minimum period and retained a substantial portion of fixed asset book value as compared to two years earlier; the transferee must retain transferred fixed assets and continue the business for a minimum period and satisfy other prescribed conditions; and a definition of "specified bank" is added.
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