Take over of Business
This query is : Resolved
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 .
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 .
01 November 2008
You have to acquire the undertaking of A as a slump purchase or amalgamate the company A with B
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
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
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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