Mergers & Acquisition

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For the purpose of section 72A, loss of amalgamating company can be carry forward and set off by the amalgamated company, only if the amalgamation is of an Industrial Undertaking.

What I want to know is whether it is necessary that both the amalgamated and amalgamating company be an Industrial Undertaking or only one will do?

Replies (8)

Yes both should be ind. undertaking & reason is that continuation of undertaking

@ Jigar A Thakur: It has been held in the given case law (Asstt. CIT v. Apollo Hospitals Enterprises Ltd. (2008) 23 (I) ITCL 318 (Mad-HC) , that it is necessary for an amalgamating company to be an Industrial Undertaking. Can you give any decided case law favoring your comment.

The company which is being acquired should held an industrial undertaking and not amalgamated company. This is clearly mentioned in S 72A. no need to refer any case  laws.

@ K K Agarwal: As per section 72A, it states that amalgamtion of a company iwning an industrial undertaking.....

Now the term "amalgamation of a company" is valid for both amalgamated as well as amalgamating company and not only for amalgamating company.

Dear All,

Refer Section and it does not required case law

Anuj

It is not so read the whole section. S 72A was brought to protect the sick industries. The industrial undertaking should be owned by the amalgamating company. Amalgamated company can be in any business.

Thanks

Dear All,

Amalagameted Comapny SHOULD c/f business of amalgamating company for at least 5 year.It means that New Co. should follw this condition.


 

Can't a new company carry on business of amalgamating company which might be different from its own business.


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