Liabilities - Definition / Legal Terminology - Income Tax

Explanation 2.- For the purposes of clause (19AA) of section 2 of the Income-tax Act, 1961 - the ''Liabilities'' referred to in sub-clause (ii) , shall include- (a) the liabilities which arise out of the activities or operations of the undertaking; (b) the specific loans or borrowings including debentures raised, incurred and utilised solely for the activities or operations of the undertaking; and (c) in cases, other than those referred to in clause (a) or clause (b), so much of the amounts of general or multipurpose borrowings, if any, of the demerged company as stand in the same proportion which the value of the assets transferred in a demerger bears to the total value of the assets of such demerged company immediately before the demerger.