Carry forward and set off of losses restricted after shareholding change; eligible start-up and specified exceptions may preserve carryforward. Where a closely held company experiences a change in shareholding during the previous year, pre-existing losses cannot be carried forward and set off against the previous year's income unless, on the last day of the previous year, shares carrying not less than 51% of voting power are beneficially held by the same persons who held such shares on the last day of the year(s) in which the loss was incurred. An eligible start-up may be allowed carry forward where original shareholders continue to hold their shares and the loss arose within the specified start-up period; specified exceptions preserve carry-forward despite certain changes.
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Provisions expressly mentioned in the judgment/order text.
Carry forward and set off of losses restricted after shareholding change; eligible start-up and specified exceptions may preserve carryforward.
Where a closely held company experiences a change in shareholding during the previous year, pre-existing losses cannot be carried forward and set off against the previous year's income unless, on the last day of the previous year, shares carrying not less than 51% of voting power are beneficially held by the same persons who held such shares on the last day of the year(s) in which the loss was incurred. An eligible start-up may be allowed carry forward where original shareholders continue to hold their shares and the loss arose within the specified start-up period; specified exceptions preserve carry-forward despite certain changes.
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