TaxTMI 
TaxTMI 
Provisions relating to carry forward & set off of accumulated losses and unabsorbed depreciation in case of Amalgamation or Demerger etc. - (New) Section 116(1) to (4) / (Old) Section 72A(1) to (3)
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....gamation of the said public sector company and the amalgamation is carried out within five years from the end of the tax year in which the restriction on amalgamation in the share purchase agreement ends, • "Erstwhile public sector company" means a company which was a public sector company in earlier tax years and ceases to be so due to strategic disinvestment by the Government. then, irrespective of anything contained in any other provision of this Act, • the accumulated loss and unabsorbed depreciation of the amalgamating company shall be deemed to be • the loss or, allowance for unabsorbed depreciation of the amalgamated company for the tax year in which the amalgamation was effected, and • other provisions of this Act relating to set off and carry forward of loss and allowance for depreciation shall apply accordingly. Restriction on Loss Transfer in Strategic Disinvestment Cases [ Section 116(2) ] • The accumulated loss and the unabsorbed depreciation of the amalgamating company, which is deemed to be the loss or, as the case may be, the unabsorbed depreciation of the amalgamated company, shall not exceed th....
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....fulfils such other conditions as prescribed under rule 60 to ensure the revival of the business of the amalgamating company or to ensure that the amalgamation is for genuine business purpose. • (a) the amalgamated company, owning an industrial undertaking of the amalgamating company by way of amalgamation, shall- • (i) achieve the level of production of at least 50% of the installed capacity of the said undertaking before the end of four years from the date of amalgamation; and • "Installed capacity" means the capacity of production existing on the date of amalgamation; • (ii) continue to maintain the said minimum level of production till the end of five years from the date of amalgamation; and • (b) the amalgamated company shall furnish to the Assessing Officer a certificate in Form No. 29, duly verified by an accountant as defined in section 515(3)(b), • with reference to the books of account and other documents showing particulars of production, along with the return of income for the relevant tax year during which the prescribed level of production is achieved and for subsequent relevant tax....
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....e public sector company or companies; or • (d) an erstwhile public sector company with one or more company or companies, if the share purchase agreement entered into under strategic disinvestment restricted immediate amalgamation of the said public sector company and the amalgamation is carried out within five year from the end of the previous year in which the restriction on amalgamation in the share purchase agreement ends, • The accumulated loss and the unabsorbed depreciation of the amalgamating company, which is deemed to be the loss or, as the case may be, the allowance for unabsorbed depreciation of the amalgamated company, shall not be more than the accumulated loss and unabsorbed depreciation of the public sector company as on the date on which the public sector company ceases to be a public sector company as a result of strategic disinvestment. • then, notwithstanding anything contained in any other provision of this Act, • the accumulated loss and the unabsorbed depreciation of the amalgamating company • shall be deemed to be the loss or, as the case may be, allowance for unabsorbed depreciation of the amal....
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....may relax the condition of achieving the level of production or the period during which the same is to be achieved or both in suitable cases having regard to the genuine efforts made by the amalgamated company to attain the prescribed level of production and the circumstances preventing such efforts from achieving the same; (b) the amalgamated company shall furnish to the Assessing Officer a certificate in Form No. 62, duly verified by an accountant, with reference to the books of account and other documents showing particulars of production, along with the return of income for the assessment year relevant to the previous year during which the prescribed level of production is achieved and for subsequent assessment years relevant to the previous years falling within five years from the date of amalgamation. In other words, Due date of Filling Form 62 If due date of submission of return of income is • 31 October than Form 62 filling due date is 31 October • 30 November then Form 62 filling due date is 30 November Chargeable for tax if condition laid down in section 72A(2) not complied • The set ....