Amalgamation of Companies
This query is : Open
Sandeep Rohatgi
(Querist)
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
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
(Expert)
25 October 2008
SEction 72A of the IT act deals with this exhaustively.
Sandeep Rohatgi
(Querist)
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
Thanks for your reply , but if you can spare some time and elobrate the same it shall be more beneficial .
taxsolutions
S.Srinivasaraghavan
(Expert)
30 October 2008
What specific area you have an issue?
Sandeep Rohatgi
(Querist)
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 .
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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