India - Income Tax Act 2010 - Saarc

S. 72AB I.T. ACT, 1961 1.372amalgamation was brought into force and other provisions of this Act relating toset-off and carry forward of loss and allowance for depreciation shall applyaccordingly.Explanation.—For the purposes of this section,—(i) “accumulated loss” means so much of the loss of the amalgamatingbanking company under the head “Profits and gains of business orprofession” (not being a loss sustained in a speculation business)which such amalgamating banking company, would have been entitledto carry forward and set-off under the provisions of section 72if the amalgamation had not taken place;(ii) “banking company” shall have the same meaning assigned to it inclause (c) of section 5 of the Banking Regulation Act, 1949 (10 of1949) 53 ;(iii) “banking institution” shall have the same meaning assigned to it insub-section (15) of section 45 of the Banking Regulation Act, 1949 (10of 1949) 53 ;(iv) “unabsorbed depreciation” means so much of the allowance fordepreciation of the amalgamating banking company which remainsto be allowed and which would have been allowed to such bankingcompany if amalgamation had not taken place.]54[Provisions relating to carry forward and set off of accumulated loss andunabsorbed depreciation allowance in business reorganisation of co-operativebanks.72AB. (1) The assessee, being a successor co-operative bank, shall, in a casewhere the amalgamation has taken place during the previous year, beallowed to set off the accumulated loss and the unabsorbed depreciation, if any,of the predecessor co-operative bank as if the amalgamation had not taken place,and all the other provisions of this Act relating to set off and carry forward of lossand allowance for depreciation shall apply accordingly.(2) The provisions of this section shall apply if—(a) the predecessor co-operative bank—(i) has been engaged in the business of banking for three or moreyears; and(ii) has held at least three-fourths of the book value of fixed assets ason the date of the business reorganisation, continuously for twoyears prior to the date of business reorganisation;(b) the successor co-operative bank—(i) holds at least three-fourths of the book value of fixed assets of thepredecessor co-operative bank acquired through businessreorganisation, continuously for a minimum period of five yearsimmediately succeeding the date of business reorganisation;53. For text of sections 5(c) and 45 of the Banking Regulation Act, 1949, see Appendix.54. Inserted by the Finance Act, 2007, w.e.f. 1-4-2008.