TaxTMI 
TaxTMI 
Carry forward and set off of accumulated loss and unabsorbed depreciation allowance in scheme of amalgamation of Banking Company or Institution - (New) Section 117 / (Old) Section 72AA
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....ions under Section 116 are not fulfilled, Section 117 independently grants the benefit. (a) Amalgamation of Banking Companies with Banking Institutions or Companies This clause covers amalgamations involving banking companies. It contains two independent situations. (i) Government-Sanctioned Amalgamation under Section 45(7) of the Banking Regulation Act, 1949 This applies where: • one or more banking companies merge with another banking institution; and • the amalgamation is sanctioned by the Central Government under Section 45(7) of the Banking Regulation Act. (ii) Amalgamation Following Strategic Disinvestment It applies where: • a banking company merges with another banking inst....
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....ing to set off and carry forward of loss and allowance for depreciation shall apply accordingly. Restriction on the Period of Carry Forward of Predecessor's Business Losses in Amalgamations Effective on or after 1 April 2025 [ Section 117(2) ] Where any scheme of amalgamation as referred to in section 117(1) is brought into force on or after the 1st April, 2025, any loss forming part of the accumulated loss of the predecessor entity, being- • (i) the banking company or companies; • (ii) the amalgamating corresponding new bank or banks; or • (iii) the amalgamating Government company or companies, as the case may be, which is deemed to be the loss of the successor entity, being- â€....
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....Undertakings) Act, 1980; • (e) "general insurance business" shall have the same meaning as assigned to it in section 3(g) of the General Insurance Business (Nationalisation) Act, 1972; • (f) "Government company" means a Government company as defined in section 2(45) of the Companies Act, 2013, engaged in the general insurance business and established under section 4 or 5 or 16 of the General Insurance Business (Nationalisation) Act, 1972; • (g) "original predecessor entity" means predecessor entity in respect of the first amalgamation; • (h) "strategic disinvestment" shall have the meaning assigned to it in section 116(3)(c)(i); • (i) "unabsorbed depreciati....
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....or more Government company or companies with any other Government company under a scheme sanctioned and brought into force by the Central Government • under section 16 of the General Insurance Business (Nationalisation) Act, 1972, The accumulated loss and the unabsorbed depreciation of • such banking company or companies or amalgamating corresponding new bank or banks or amalgamating Government company or companies shall be deemed to be the loss or, as the case may be, allowance for depreciation of such banking institution or company or amalgamated corresponding new bank or amalgamated Government company for the previous year in which the scheme of amalgamation was brought into force and other provisions of....
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....a loss sustained in a speculation business) which such amalgamating banking company or companies or amalgamating corresponding new bank or banks or amalgamating Government company or companies, would have been entitled to carry forward and set off under the provisions of section 72, if the amalgamation had not taken place; • (ii) "banking company" shall have the meaning assigned to it in section 5(c) of the Banking Regulation Act, 1949; • (iii) "banking institution" shall have the meaning assigned to it in section 45(15) of the Banking Regulation Act, 1949; • (iv) "corresponding new bank" shall have the meaning assigned to it in section 2(d) of the Banking Companies (Acquisition and Transfe....