Income Tax doubt urgent..

CA SENTHIL PRABHU (CHARTERED ACCOUNTANT) (132 Points)

05 July 2011  

X & Co a partnership firm has some unabsorbed losses.

X Pvt ltd has the same partners in X & co as shareholders.

Is it possible under Sec 47(xiii) to transfer the firm X & co to X P ltd.





If possible ..Next in the same year X Pvt Ltd wants to demerge and tranfer the loss making division(i.e.tranferred from X & co) to Y Pvt ltd (another company which wants the losses for their tax saving purpose).

Please clarify whether this is possible or not. please quote section numbers also.

Thanks in advance.