Section 16 - Amendment of Section 43 - Finance (No. 2) Act, 1967

16. Amendment of Section 43 In section 43 of the Income-tax Act, - (i) in clause (1), after Explanation 6, the following Explanation shall be inserted, namely :- Explanation 7 : Where, in a scheme of amalgamation, any capital asset is transferred by the amalgamating company to the amalgamated company and the amalgamated company is an Indian company, the actual cost of the transferred capital asset to the amalgamated company shall be taken to be the same as it would have been if the amalgamating company had continued to hold the capital asset for the purposes of its own business; ; (ii) in clause (6), after Explanation 2, the following Explanation shall be inserted, namely :- Explanation 2A : Where, in a scheme of amalgamation, any capital asset is transferred by the amalgamating company to the amalgamated company, and the amalgamated company is an Indian company, the written down value of the transferred capital asset to the amalgamated company shall be taken to be the same as it would have been if the amalgamating company had continued to hold the capital asset for the purposes of its business. .