Friends,
There is a company A. It is amalgamated company. The company B is amalgamating comapny and is a sick company. The sick company is earning profits. After amalgamation company A's profits will include the profits of company B i.e. sick company. Will the company A get reduction of such profits for the purpose of computation of book profits u/s 115JB as per clause vii of explanation 1? Please provide decision of some court in support of your answer.
Regards,
Chintan
Friends please answer this.... if any clarification is needed please do feel free to ask.. i ll be morethan happy to clarify...but please post your opinion along with support of decisions.... Thanks in advance
Since the company A is the amalgamated company for the purpose of book profit entire profit of A & B will be considered as there is now no seperate company A & B as A is the only surviving company after the completion of the merger.
CAclubindia
