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Set off of losses - section 72A of IT Act.

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This query is : Resolved

CA Mayur Sojrani (Querist)

29 December 2010 Hey, I was going through the conditions as laid in section 72A of the Income tax Act where losses can be set off of amalgamating company by the amalgamated company.

Now It is necessary the the company must be the Industrial Undertaking..? & what does the Industrial Undertaking means.

I am going through the pratical case where the one loss making company say A ltd is amalgamated with say B Ltd.

Both the company are engage in Business of Health & Spa center.

Now can the losses of A ltd can be set off by profit of B ltd after amalgamation..?

Sarveshwar Lahoty

Sarveshwar Lahoty (Expert)

29 December 2010 Yes losses can be set off by B ltd

CA Mayur Sojrani

CA Mayur Sojrani (Querist)

30 December 2010 Sir can u plz explain in deatail.
As such i had read it is given that the Company should be an industrial undertaking as laid in section 72A
Am I right...?

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