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2018 (6) TMI 1053 - HC - Income TaxCarry-forward losses or unabsorbed depreciation of the Demerged Company to resultant company - Whether the brought forward losses & unabsorbed depreciation can be related to transferred undertaking due to demerger in absence of separate accounts u/s 72A(4)(b) - AO rejected the claim on the ground that the assessee had not maintained separate accounts - Tribunal remanded the issue back to the Assessing Officer - Held that:- Tribunal is correct in commenting that if the brought forward losses and unabsorbed depreciation are directly relatable to the Transferred Company, the same has to be carried forward in the hands of the Resultant Company as per section 72A(4)(a) - Tribunal noted that the statutory provision do not command that in order to avail the benefit of clause (a), separate books of accounts must be maintained. The Tribunal therefore required the AO to examine the explanation of the assessee on merits - Tribunal has not given any such declaration that in case of the assessee, the brought forward losses and unabsorbed depreciation are directly relatable to the Transferred Company, but has merely required the AO to examine such a question in light of the evidence on record - we see no error in the view of the Tribunal - appeal is dismissed.
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