set off of brought forward losses-section 72A and 79
This query is : Resolved
Rajesh agarwal
(Querist)
08 July 2011
co.B(A pvt.ltd.co.)is a 100% subsidiary of co.A.Co.B has huge brought forward losses.In the finacial year 2009-10,co.C acquires 100% shareholding of co.B from Co.A.Co.C can not claim set off for losses of co.B in that finacial year due to the provisions of section 79 of income tax act.My queries in this regard are as under-
1.Whether co.C can claim set off for losses of co.B in the next financial year i.e.2010-11.
2.If the co.B is acquired by Co.D by way of demerger in the financial year 2009-10 or subsequent year.Whether co.D can claim set off for losses of co.B
1.Whether co.C can claim set off for losses of co.B in the next financial year i.e.2010-11.
2.If the co.B is acquired by Co.D by way of demerger in the financial year 2009-10 or subsequent year.Whether co.D can claim set off for losses of co.B
CA PARAS BAFNA
(Expert)
09 July 2011
1.Whether co.C can claim set off for losses of co.B in the next financial year i.e.2010-11.
Reply-
Just by acquiring the shares in B, company
C can not get any right to set off B's losses as B is a separate assessee, distinct from C.
Applicability of Section 79 is being wrongly understood by you in reference to company C.
Section 79 is decisive in the case of B only. In case of 100% change in shareholding company B will not be eligible to claim its c/fd losses against the profits of the year in which shareholding so changes, or in subsequent years.
Reply-
Just by acquiring the shares in B, company
C can not get any right to set off B's losses as B is a separate assessee, distinct from C.
Applicability of Section 79 is being wrongly understood by you in reference to company C.
Section 79 is decisive in the case of B only. In case of 100% change in shareholding company B will not be eligible to claim its c/fd losses against the profits of the year in which shareholding so changes, or in subsequent years.
CA PARAS BAFNA
(Expert)
09 July 2011
2.If the co.B is acquired by Co.D by way of demerger in the financial year 2009-10 or subsequent year.Whether co.D can claim set off for losses of co.B
Reply-
Again, the term "demerger" has been wrongly used by you. It can be merger only.
Under certain conditions, if merger of B company takes place with D company,
D can claim losses of B.
Reply-
Again, the term "demerger" has been wrongly used by you. It can be merger only.
Under certain conditions, if merger of B company takes place with D company,
D can claim losses of B.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Query on effect of registration of property
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Visiting card purchase
- GST on reimbursement of expenses
- Additional trade name
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Wrong CMPo8 file
- Whether output tax is taken credit by purchaser
- Number of years as per AS amortisation of Goodwill
- Equity Share Sale and Purchase
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
