Business reorganisation loss transfer: successor entity inherits accumulated losses and depreciation, subject to compliance or taxability. When a firm or proprietary concern is succeeded by a company meeting the statutory transfer conditions, or when a private or unlisted public company is succeeded by an LLP meeting prescribed conditions, the predecessor's accumulated loss and unabsorbed depreciation are deemed the successor's loss and depreciation for the previous year of reorganisation and are subject to ordinary set-off and carry forward rules; failure to comply with the proviso conditions causes amounts so set off or carried forward to be treated as the successor's income and charged to tax in the year of non-compliance.