TaxTMI 
TaxTMI 
Carry forward and set off of losses in the case of certain companies - (New) Section 119(3) to (6) / (Old) Section 79
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.... (generally listed companies and specified public companies). Clause (a) - 51% Continuity of Beneficial Voting Power Test Losses of earlier years shall not be allowed to be carried forward unless, on the last day of the relevant tax year, persons holding not less than 51% of the voting power are the same beneficial owners who held at least 51% voting power on the last day of the year in which the loss was incurred. The provision prevents companies from selling "tax losses." Without this restriction, • a profitable company could acquire a loss-making company merely to reduce its tax liability by utilizing accumulated losses. Clause (b) - Relaxed Shareholding Test for Eligible Start-ups Recogniz....
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....afforded to the jurisdictional Principal Commissioner or Commissioner; or • (d) to a company, its subsidiary and subsidiary of such subsidiary, if-- • (i) the Board of Directors of such company were suspended by the Tribunal on an application moved by the Central Government under section 241 of the Companies Act, 2013 and new directors were appointed by the Central Government under section 242 of the said Act; and • (ii) the change in shareholding of such company and its subsidiary, and subsidiary of such subsidiary has taken place consequent to a resolution plan approved by the Tribunal under section 242 of the Companies Act, 2013 and a reasonable oppo....
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....me Tax Act, 1961 [ Upto 31.03.2026 ] Where a change in shareholding has taken place during the previous year in the case of a closely held company (not being a company in which the public are substantially interested), no loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year, unless on the last day of the previous year, the shares of the company carrying not less than 51% of the voting power were beneficially held by persons who beneficially held shares of the company carrying not less than 51% of the voting power on the last day of the year or years in which the loss was incurred: Provisions for Eligible start up company - Even if the said condition is n....
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....6, after affording a reasonable opportunity of being heard to the jurisdictional Principal Commissioner or Commissioner • To a company, and its subsidiary and the subsidiary of such subsidiary, where, • i) the Tribunal, on an application moved by the Central Government under section 241 of the Companies Act, 2013, has suspended the Board of Directors of such company and has appointed new directors nominated by the Central Government, under section 242 of the said Act; • ii) and a change in shareholding of such company, and its subsidiary and the subsidiary of such subsidiary, has taken place in a previous year pursuant to a resolution plan approved by the Tribunal under section 242 of t....