Take over of Business

This query is : Resolved

Sandeep Rohatgi (Querist)
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01 November 2008 We are part of large Group

The Facts in the matter are

Our Group Company A has lend other group company B a unsecured loan of Rs 7 crores .Four years back

Company A was in resturant business and suffered heavy losses and at present Accumulated income tax loss is Rs 15 Crores . Since the company A left with no Funds to repay the amount to creditors .

Company B has no options just to outright purchase the business of company to adjust the loan outstanding .

How shall the company B shall reflect the business takeover of A as per Income tax .

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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01 November 2008 You have to acquire the undertaking of A as a slump purchase or amalgamate the company A with B

Sandeep Rohatgi

Sandeep Rohatgi (Querist)
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01 November 2008 Dear Mr S Srinivasaraghavan

Also please advise under what provision of income tax , tax benefit of carried forward income tax loss can be a availed also if you can mark your email id in reply

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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03 November 2008 In the case of slump sale it is section 50B. No carried forward losses arise in the case of slump sale. Section 72A in the case of Amalgamation

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