India - Income Tax Act 2010 - Saarc

S. 72A I.T. ACT, 1961 1.370business reorganisation was effected and other provisions of this Act relating toset off and carry forward of loss and allowance for depreciation shall applyaccordingly :Provided that if any of the conditions laid down in the proviso to clause (xiiib) ofsection 47 are not complied with, the set off of loss or allowance of depreciationmade in any previous year in the hands of the successor limited liabilitypartnership, shall be deemed to be the income of the limited liability partnershipchargeable to tax in the year in which such conditions are not complied with.(7) For the purposes of this section,—(a) “accumulated loss” means so much of the loss of the predecessor firmor the proprietary concern or the amalgamating company or thedemerged company, as the case may be, under the head “Profits andgains of business or profession” (not being a loss sustained in aspeculation business) which such predecessor firm or the proprietaryconcern or amalgamating company or demerged company, wouldhave been entitled to carry forward and set off under the provisionsof section 72 if the reorganisation of business or amalgamation ordemerger had not taken place;The following clause (a) shall be substituted for the existing clause (a)of sub-section (7) of section 72A by the Finance Act, 2010, w.e.f.1-4-2011 :(a) “accumulated loss” means so much of the loss of the predecessor firmor the proprietary concern or the private company or unlisted publiccompany before conversion into limited liability partnership or theamalgamating company or the demerged company, as the case may be,under the head “Profits and gains of business or profession” (not beinga loss sustained in a speculation business) which such predecessorfirm or the proprietary concern or the company or amalgamatingcompany or demerged company, would have been entitled to carryforward and set off under the provisions of section 72 if thereorganisation of business or conversion or amalgamation or demergerhad not taken place;48[(aa) “industrial undertaking” means any undertaking which is engaged in—(i) the manufacture or processing of goods; or(ii) the manufacture of computer software; or(iii) the business of generation or distribution of electricity or anyother form of power; or49[(iiia) the business of providing telecommunication services, whetherbasic or cellular, including radio paging, domestic satellite service,network of trunking, broadband network and internetservices; or]48. Inserted by the Finance Act, 2001, w.r.e.f. 1-4-2000.49. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003.