Home Acts & Rules Bill Bills Direct Taxes Code Bill, 2009 Chapters List Chapter III - Part-G COMPUTATION OF TOTAL INCOME - G. - Aggregation of income This
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Clause 61 - Special provisions relating to business reorganisation - Direct Taxes Code Bill, 2009Extract Special provisions relating to business reorganisation 61. (1) The provisions of this section shall apply, if the successor satisfies the test of continuity of business. (2) The 'unabsorbed current loss from ordinary sources' of the predecessor, in respect of the financial year in which business reorganisation has taken place, shall be deemed to be the 'unabsorbed preceeding year loss from ordinary sources' of the successor in respect of the financial year; and the provisions of section 58 shall apply accordingly. (3) The 'unabsorbed current loss from special source' of the predecessor for the financial year in which business reorganisation has taken place, shall be deemed to be the 'unabsorbed preceeding year loss from that special source' of the successor for the financial year; and the provisions of section 59 shall apply accordingly. (4) The provision of this section shall not apply to a successor, if- (a) the predecessor is a sole proprietory concern or an unincorporated body; and (b) the share holding of the sole proprietor or the participant, as the case may be, ceases to be less than fifty per cent of the total value of the shares of the successor company at any time during the period of five years immediately succeding the financial year in which the business reorganisation takes place. (5) The total income of the financial year in which the business reorganisation took place and all the subsequent financial years shall, regardless of anything to the contrary contained in this Code, be rectified as if the provisions of this section had never been given effect to in those financial years if the test of continuity of business, or any of the conditions specified in sub-section (4), is not satisfied at any time during five financial years immediately succeeding the financial year in which the business reorganisation takes place.
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