Provisions relating to carry forward and set off of accumulated loss and unabsorbed depreciation allowance in business reorganisation of co-operative banks [ Section 72AB ]

Set off of accumulated losses permitted to successor co operative banks subject to asset holding and continuity conditions; noncompliance treated as income.

Successor co operative banks may set off accumulated loss and unabsorbed depreciation of a predecessor co operative bank as if the business reorganisation had not occurred, subject to section 72AB conditions. The allowable amount is either directly attributable losses or a proportionate share where attribution is not possible, and pre and post reorganisation periods are treated as separate previous years. The set off is conditional on predecessor and successor asset holding and continuity requirements and other prescribed conditions; failure to comply causes the previously allowed set off to be deemed income of the successor bank in the year of noncompliance.