Section 79 - carry forward of loss - change in shareholding pattern

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....ection 79 - carry forward of loss - change in shareholding pattern<br> Query (Issue) Started By: - Sanjeev Sharma Dated:- 11-4-2010 Last Reply Date:- 13-4-2010 Income Tax<br>Got 1 Reply<br>Income Tax....

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....<br>Section 79 of Income Tax Act : 60% shares of a Pvt. Ltd. Indian company "Orange India" was held by another pvt. co. named B and balance was held by individuals. The shareholding patern of Company ....

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....B was totally changed and its 100% shares was acquired by and transferred to Company C.The shareholding pattern of Orange India has , however, remained the same. Will the losses of Orange India will b....

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....e allowed to be carried forward u/s 79 ?? Reply By Rama Krishana: The Reply: IT appears that "orange India" is a subsidiary of "B". Orange India is not the subsidiary of the shareholders of B. Theref....

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....ore, the shareholding of the B into orange India is the deciding factor not the shareholding of the other persons in B. Therefore any change in the patter of holding company would not attract the prov....

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....isions of 79 restricting the carry forward and set off of losses<br> Discussion Forum - Knowledge Sharing ....