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Additional requirements for business reorganization regarding the set-off and carry forward of losses and depreciation allowances [ Section 72A(6) & (6A) ] - Income Tax - Ready Reckoner - Income TaxExtract Additional requirements for business reorganization regarding the set-off and carry forward of losses and depreciation allowances [ Section 72A(6) (6A) ] Reorganisation of business by a firm or proprietor is succeeded by a Company , Whereby, a firm is succeeded by a company fulfilling the conditions laid down in clause ( xiii ) of section 47 or a proprietary concern is succeeded by a company fulfilling the conditions laid down in clause ( xiv ) of section 47 , then , notwithstanding anything contained in any other provision of this Act , the accumulated loss and the unabsorbed depreciation of the predecessor firm or the proprietary concern , as the case may be, shall be deemed to be the loss or allowance for depreciation of the successor company for the purpose of previous year in which business reorganisation was effected and other provisions of this Act relating to set off and carry forward of loss and allowance for depreciation shall apply accordingly. [ Section 72A(6) ] Chargeable to Tax if does not complied the condition of section 72A(6) if any of the conditions laid down in the proviso to clause ( xiii ) or the proviso to clause ( xiv ) to section 47 are not complied with, the set off of loss or allowance of depreciation made in any previous year in the hands of the successor company, shall be deemed to be the income of the company chargeable to tax in the year in which such conditions are not complied with. [ First proviso of Section 74A(6) ] Reorganisation of business by a firm or proprietor is succeeded by a Company , whereby a private company or unlisted public company is succeeded by a limited liability partnership fulfilling the conditions laid down in the proviso to clause (xiiib) of section 47 , then, notwithstanding anything contained in any other provision of this Act , the accumulated loss and the unabsorbed depreciation of the predecessor company , shall be deemed to be the loss or allowance for depreciation of the successor limited liability partnership for the purpose of the previous year in which business reorganisation was effected and other provisions of this Act relating to set off and carry forward of loss and allowance for depreciation shall apply accordingly. Chargeable to Tax if does not complied the condition of section 72A(6A) if any of the conditions laid down in the proviso to clause (xiiib) of section 47 are not complied with, the set off of loss or allowance of depreciation made in any previous year in the hands of the successor limited liability partnership, shall be deemed to be the income of the limited liability partnership chargeable to tax in the year in which such conditions are not complied with. [ First proviso Section 74A(6A) ]
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