https://www.taxtmi.com/caselaws?id=774311 The Bombay HC upheld ITAT's decision allowing carry forward of business losses and unabsorbed depreciation. The court held that Section 72A(4) restrictions on loss carry forward were not applicable as there was no 'demerger' under the Income Tax Act. The restructuring scheme involved transfer of only specified assets and liabilities of petitioner's divisions to two companies, with consideration paid in cash rather than shares. Since the statutory requirements for demerger were not met - specifically, transfer of all properties/liabilities and consideration through share issuance - the loss carry forward restrictions did not apply. en-us Wed, 02 Jul 2025 00:00:00 +0530 Mon, 07 Jul 2025 08:42:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774311 The Bombay HC upheld ITAT's decision allowing carry forward of business losses and unabsorbed depreciation. The court held that Section 72A(4) restrictions on loss carry forward were not applicable as there was no 'demerger' under the Income Tax Act. The restructuring scheme involved transfer of only specified assets and liabilities of petitioner's divisions to two companies, with consideration paid in cash rather than shares. Since the statutory requirements for demerger were not met - specifically, transfer of all properties/liabilities and consideration through share issuance - the loss carry forward restrictions did not apply. Case-Laws Income Tax Wed, 02 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774311