Scope of Sec.141A with respect to claims of amalgamated Co. - Income Tax - 1603/CBDT

INSTRUCTION NO. 1603/CBDT Dated: February 15, 1985 By virtue of the provisions of sec 72 A of the I.T. Act, 1961 the accumulated losses and the unabsorbed depreciation of an amalgamating co. is deemed to be the loss for the previous year in which the amalgamation was effected and the amalgamated company will have the right to set off and carry forward of the same, provided certain conditions specified in this behalf are fulfilled. The Board had an occasion to consider whether the amalgamated company can claim the accumulated losses and unabsorbed depreciation of the amalgamating company whose assessments are not completed to be set off against formers profits in the course of its provisional assessments u/s.141 A of the act. The Board are advised that in view of the specific provisions contained in sec. 141-A (2) (iv) of the I.T.Act, the accumulated losses and unabsorbed depreciation which have not been computed in regular assessments but claimed as such by an amalgamated company to be set off against its profits would not be given effect to in the course of an assessment u/s.141A of the Act. These instructions may please be brought to the notice of all the officers working under you.