India - Income Tax Act 2010 - Saarc

1.367 CH. VI - AGGREGATION OF INCOME AND SET OFF OF LOSS S. 72A(ii) if the loss cannot be wholly so set off, the amount of loss not so setoff shall be carried forward to the following assessment year and soon :]42[Provided that where the whole or any part of such loss is sustained in any suchbusiness as is referred to in section 33B which is discontinued in thecircumstances specified in that section, and, thereafter, at any time before theexpiry of the period of three years referred to in that section, such business isre-established, reconstructed or revived by the assessee, so much of the loss asis attributable to such business shall be carried forward to the assessment yearrelevant to the previous year in which the business is so re-established,reconstructed or revived, and—(a) it shall be set off against the profits and gains, if any, of that businessor any other business carried on by him and assessable for thatassessment year ; and(b) if the loss cannot be wholly so set off, the amount of loss not so set offshall, in case the business so re-established, reconstructed or revivedcontinues to be carried on by the assessee, be carried forward to thefollowing assessment year and so on for seven assessment yearsimmediately succeeding.](2) Where any allowance or part thereof is, under sub-section (2) of section 32 orsub-section (4) of section 35, to be carried forward, effect shall first be given tothe provisions of this section.(3) No loss 42 [(other than the loss referred to in the proviso to sub-section (1) ofthis section)] shall be carried forward under this section for more than eightassessment years immediately succeeding the assessment year for which theloss was first computed.43[Provisions relating to carry forward and set off of accumulated loss andunabsorbed depreciation allowance in amalgamation or demerger, etc. 43a72A.44[(1) Where there has been an amalgamation of—(a) a company owning an industrial undertaking or a ship or a hotel withanother company; or42. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.43. Substituted by the Finance Act, 1999, w.e.f. 1-4-2000. Prior to its substitution, section 72A,was inserted by the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978 and later on amended by theFinance Act, 1978, w.e.f. 1-4-1978 and Finance (No. 2) Act, 1998, w.e.f. 1-4-1999.43a. See also Circular No. 5/2009, dated 2-7-2009. For details, see Taxmann’s Master Guide toIncome-tax Act.44. Substituted by the Finance Act, 2007, w.e.f. 1-4-2008. Prior to its substitution, sub-section(1), as amended by the Finance Act, 2003, w.e.f. 1-4-2004 and Finance Act, 2000, w.e.f.1-4-2000, read as under :“(1) Where there has been an amalgamation of a company owning an industrial undertakingor a ship or a hotel with another company or an amalgamation of a banking companyreferred to in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949) witha specified bank, then, notwithstanding anything contained in any other provision of thisAct, the accumulated loss and the unabsorbed depreciation of the amalgamating companyshall be deemed to be the loss or, as the case may be, allowance for depreciation ofthe amalgamated company for the previous year in which the amalgamation was effected,and other provisions of this Act relating to set off and carry forward of loss and allowancefor depreciation shall apply accordingly.”