Transfer of unabsorbed losses permissible if
amalgamating company in business for three or more years even if business units
engaged for less than three years; Activities for setting up of business
also construed as “engaged in business”
The Karnataka High Court, while allowing set off of unabsorbed loss of the taxpayer acquired on amalgamation, has held that unabsorbed losses pertained to the amalgamating company as a whole, and not to any division. It was the amalgamating company that should have been engaged in business for three or more years prior to amalgamation.
The Karnataka High Court, while allowing set off of unabsorbed loss of the taxpayer acquired on amalgamation, has held that unabsorbed losses pertained to the amalgamating company as a whole, and not to any division. It was the amalgamating company that should have been engaged in business for three or more years prior to amalgamation.
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