Amalgamation of Companies

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Sandeep Rohatgi (Querist)
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24 October 2008 A company was incorporated in July 2004 . The company started Restaurant operations in the May 2005 .

The restaurant business was continued by the company till March 2008 . The Company has also exported frozen food to United Kingdom . Due to heavy operational cost the following losses as per income tax are accumulated .

Kindly advise if what conditions are to be fulfilled for claiming losses under Income tax Act in case we opt to merge this company into some other profitable company .

With regards

Sandeep Rohatgi
09868705794

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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25 October 2008 SEction 72A of the IT act deals with this exhaustively.

Sandeep Rohatgi

Sandeep Rohatgi (Querist)
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27 October 2008 Sir ,

Thanks for your reply , but if you can spare some time and elobrate the same it shall be more beneficial .

taxsolutions

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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30 October 2008 What specific area you have an issue?

Sandeep Rohatgi

Sandeep Rohatgi (Querist)
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01 November 2008 We are part of large Group

The Facts in the matter are

Our Group Company A has lend other group company B a unsecured loan of Rs 7 crores .Four years back

Company A was in resturant business and suffered heavy losses and at present Accumulated income tax loss is Rs 15 Crores . Since the company A left with no Funds to repay the amount to creditors .

Company B has no options just to outright purchase the business of company to adjust the loan outstanding .

How shall the company B shall reflect the business takeover of A as per Income tax .

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