India - Income Tax Act 2010 - Saarc

S. 72A I.T. ACT, 1961 1.368(b) a banking company referred to in clause (c) of section 5 of the BankingRegulation Act, 1949 (10 of 1949) 45 with a specified bank; or(c) one or more public sector company or companies engaged in thebusiness of operation of aircraft with one or more public sectorcompany or companies engaged in similar business,then, notwithstanding anything contained in any other provision of this Act, theaccumulated loss and the unabsorbed depreciation of the amalgamating companyshall be deemed to be the loss or, as the case may be, allowance for unabsorbeddepreciation of the amalgamated company for the previous year in which theamalgamation was effected, and other provisions of this Act relating to set offand carry forward of loss and allowance for depreciation shall apply accordingly.]46[(2) Notwithstanding anything contained in sub-section (1), the accumulatedloss shall not be set off or carried forward and the unabsorbed depreciation shallnot be allowed in the assessment of the amalgamated company unless—(a) the amalgamating company—(i) has been engaged in the business, in which the accumulated lossoccurred or depreciation remains unabsorbed, for three or moreyears;(ii) has held continuously as on the date of the amalgamation at leastthree-fourths of the book value of fixed assets held by it two yearsprior to the date of amalgamation;(b) the amalgamated company—(i) holds continuously for a minimum period of five years from thedate of amalgamation at least three-fourths of the book value offixed assets of the amalgamating company acquired in a schemeof amalgamation;(ii) continues the business of the amalgamating company for aminimum period of five years from the date of amalgamation;(iii) fulfils such other conditions as may be prescribed 47 to ensure therevival of the business of the amalgamating company or toensure that the amalgamation is for genuine business purpose.]45. For text of section 5(c) of the Banking Regulation Act, 1949, see Appendix.46. Substituted by the Finance Act, 2003, w.e.f. 1-4-2004. Prior to its substitution, sub-section(2), as amended by the Finance Act, 2000, w.e.f. 1-4-2000, read as under :“(2) Notwithstanding anything contained in sub-section (1), the accumulated loss shall notbe set off or carried forward and the unabsorbed depreciation shall not be allowed in theassessment of the amalgamated company unless the amalgamated company—(i) holds continuously for a minimum period of five years from the date of amalgamationat least three-fourths in the book value of fixed assets of the amalgamatingcompany acquired in a scheme of amalgamation;(ii) continues the business of the amalgamating company for a minimum period of fiveyears from the date of amalgamation;(iii) fulfils such other conditions as may be prescribed to ensure the revival of thebusiness of the amalgamating company or to ensure that the amalgamation is forgenuine business purpose.”47. See rule 9C and Form No. 62.