Amalgamation of companies

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CA. Jyoti Baid (Querist)
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25 June 2010 Respected All,
A pvt ltd co. A is amalgamating with another pvt ltd co B. The effective date of amalgamation is 01.04.09.
The companies has applied for amalgamation in the High Court.
in the meanwhile, the companies file their separate Income tax returns for the year 2009-10.
The scheme of amalgamation is approved by the Court.
Now does the amalgamated company needs to file its revised Income tax return for the year 2009-10.

Regards

Srikant

Srikant (Expert)
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25 June 2010 yes, If the the Purchaging company wants to take the benefit of Tax after amalgamtion and is still a going concern.

No, if both the companies lost their Going Concern status on account of amalgamation and a new Co. has emerged as a resulting affair.

CA. Jyoti Baid

CA. Jyoti Baid (Querist)
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25 June 2010 Thankyou for the reply.

The purchasing company is not an industrial undertaking or banking company or a public sector airlines as required in Section 72A.

But both the companies are engaged in purchase and sales of shares i.e. engaged in similar business.

So can it take the benefit of carry forward of losses?

Regards
Jyoti

Srikant

Srikant (Expert)
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25 June 2010 Yes, ofcourse you can take the benefit.

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CA. Jyoti Baid

CA. Jyoti Baid (Querist)
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25 June 2010 As per Section 72A:
Where there has been an amalgamation of—

(a)a company owning an industrial undertaking or a ship or a hotel with another company; or

(b)banking company referred to in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949) 45 with a specified bank; or

(c) one or more public sector company or companies engaged in the business of operation of aircraft with one or more public sector company or companies engaged in similar business,

My case doesnot fall in these three categories, so how can I take the benefit of carry forward of losses.

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