India - Income Tax Act 2010 - Saarc

1.11 CH. I - PRELIMINARY S. 2(19AA)76[(19A) “Deputy Commissioner” means a person appointed to be a DeputyCommissioner of Income-tax 77 [* * *] under sub-section (1) of section117 ;78[(19AA) “demerger”, in relation to companies, means the transfer, pursuant toa scheme of arrangement under sections 391 to 394 79 of the CompaniesAct, 1956 (1 of 1956), by a demerged company of its one or moreundertakings to any resulting company in such a manner that—(i) all the property of the undertaking, being transferred by thedemerged company, immediately before the demerger, becomesthe property of the resulting company by virtue of the demerger;(ii) all the liabilities relatable to the undertaking, being transferred bythe demerged company, immediately before the demerger,become the liabilities of the resulting company by virtue of thedemerger;(iii) the property and the liabilities of the undertaking or undertakingsbeing transferred by the demerged company are transferred atvalues appearing in its books of account immediately before thedemerger;(iv) the resulting company issues, in consideration of the demerger,its shares to the shareholders of the demerged company on aproportionate basis;(v) the shareholders holding not less than three-fourths in value ofthe shares in the demerged company (other than shares alreadyheld therein immediately before the demerger, or by a nomineefor, the resulting company or, its subsidiary) become shareholdersof the resulting company or companies by virtue of thedemerger,otherwise than as a result of the acquisition of the property orassets of the demerged company or any undertaking thereof bythe resulting company;(vi) the transfer of the undertaking is on a going concern basis;(vii) the demerger is in accordance with the conditions, if any, notifiedunder sub-section (5) of section 72A by the Central Governmentin this behalf.Explanation 1.—For the purposes of this clause, “undertaking” shallinclude any part of an undertaking, or a unit or division of anundertaking or a business activity taken as a whole, but does notinclude individual assets or liabilities or any combination thereof notconstituting a business activity.76. Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.77. Words “or an Additional Commissioner of Income-tax” omitted by the Finance (No. 2) Act,1998, w.e.f. 1-10-1998. Earlier the quoted words were inserted by the Finance Act, 1994,w.e.f. 1-6-1994.78. Clauses (19AA) and (19AAA) inserted by the Finance Act, 1999, w.e.f. 1-4-2000.79. For text of sections 391 to 394 of the Companies Act, 1956, see Appendix.