04 March 2009
If the share holding pattern in a privte limited compnay is changed, what is impliction of the carry forward of losses.
Ex: In X , a private limited compnay :A(an individual and director)holding 10% shares, B(an individual and director) holding 10% shares, C(a private limited compnay, 3 directors are representing from C Private limited) holding 80% shares, wants to change the share holding pattern and wants to have all the directors from C Private limited. i.e. both A and B wants to come out of the director ship and all the directors from C Ltd want to become the directors of X private limited compnay and the share holding of A and B is to be reduced to 2% each , X has a carry forwarded loss of over 4 crores for thePrevious year 2007-08. Change in the shareholding pattern how it will effect the carry forwarded losses. As a result of this : Is it possible that X private limited will lose the carry forwarded loss and can not set off against the profits in the current or future years. Please advise
04 March 2009
Here Company X is assessee, change in shareholding will not effect the carry forwarded losses of a Company. Company can carry forwarded losses and set off with CY profits.
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