Sec 72A of IT Act,

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2011 We are in Insurance Auxiliary services and we want to acquire a similar business. When we merge with the acquired company, are we entitled to carry forward our losses of earlier years?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 January 2011 Without knowing the status of the person and manner in which merger is taking place , it is difficult to answer. Please elaborate whether the status of both the entities are company, firm or individual. And also write the manner whether it is an amalgation ?

Querist : Anonymous

Querist : Anonymous (Querist)

16 January 2011 Hello Mr.Bafna
Thanks for the quick response!
The existing business is private limited company and the business(similar) going to acquired is a limited company(not listed). Merger proposal is that existing company will merge in to the company to be acquired. Existing private limited company got carry forward losses where as the to be acquired company got positive reserves. After merger 'to be acquired' company will be in existance. The existing company and the 'to be acquired company' are in similar business
With Regards

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