India - Income Tax Act 2010 - Saarc

S. 2(20) I.T. ACT, 1961 1.12Explanation 2.—For the purposes of this clause, the liabilities referredto in sub-clause (ii), shall include—(a) the liabilities which arise out of the activities or operations of theundertaking;(b) the specific loans or borrowings (including debentures) raised,incurred and utilised solely for the activities or operations of theundertaking; and(c) in cases, other than those referred to in clause (a) or clause (b), somuch of the amounts of general or multipurpose borrowings, ifany, of the demerged company as stand in the same proportionwhich the value of the assets transferred in a demerger bears tothe total value of the assets of such demerged company immediatelybefore the demerger.Explanation 3.—For determining the value of the property referred toin sub-clause (iii), any change in the value of assets consequent totheir revaluation shall be ignored.Explanation 4.—For the purposes of this clause, the splitting up or thereconstruction of any authority or a body constituted or establishedunder a Central, State or Provincial Act, or a local authority or a publicsector company, into separate authorities or bodies or local authoritiesor companies, as the case may be, shall be deemed to be ademerger if such split up or reconstruction fulfils 80 [such conditionsas may be notified in the Official Gazette 81 , by the Central Government];(19AAA) “demerged company” means the company whose undertaking istransferred, pursuant to a demerger, to a resulting company;](19B) “Deputy Commissioner (Appeals)” means a person appointed to be aDeputy Commissioner of Income-tax (Appeals) 82 [or an AdditionalCommissioner of Income-tax (Appeals)] under sub-section (1) ofsection 117 ;]83[(19C) “Deputy Director” means a person appointed to be a Deputy Directorof Income-tax 84 [* * *] under sub-section (1) of section 117 ;](20) 85 “director”, “manager” and “managing agent”, in relation to a company,have the meanings respectively assigned to them in the CompaniesAct, 1956 (1 of 1956) ;80. Substituted for “the conditions specified in sub-clauses (i) to (vii) of this clause, to theextent applicable” by the Finance Act, 2000, w.e.f. 1-4-2000.81. For notified conditions, see Taxmann’s Master Guide to Income-tax Act.82. Inserted by the Finance Act, 1994, w.e.f. 1-6-1994.83. Inserted, ibid.84. Words “or an Additional Director of Income-tax” omitted by the Finance (No. 2) Act, 1998,w.e.f. 1-10-1998.85. Clauses (13), (24) and (25) of section 2 of the Companies Act, 1956, define expressions“director”, “manager” and “managing agent”, respectively. For text of provisions, seeAppendix.