Set off and carry forward of losses on amalgamation subject to continuity and asset retention; noncompliance treated as taxable income. Amalgamated companies may treat the accumulated loss and unabsorbed depreciation of the amalgamating company as their own for the year of amalgamation, provided statutory eligibility is met. Eligibility requires the amalgamating company to have carried on the relevant business for a minimum period and to have retained a substantial portion of fixed asset book value; the amalgamated company must retain acquired assets and continue the business for a prescribed post amalgamation period and satisfy production and other prescribed conditions. Failure to comply results in the amounts set off or allowed being deemed taxable income of the amalgamated company.