Carry Forward & Set off Loss

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Subrahmanyam (Querist)
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03 March 2009 can a company which takes over another company carry forward set off of losses of the loss making company.

Eg: A Ltd is a loss making company. B ltd acquires A ltd by purchase of Equity capital of A ltd.
Is B ltd eligible for carry forward & set off of losses of A ltd with its profit.

Is there any case law etc in this regard.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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04 March 2009 yes loss can be carry forward and set off by B ltd.

Subrahmanyam

Subrahmanyam (Querist)
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04 March 2009 Are there any restriction / compliances required to be made in this regard like busniess of A ltd to be continued for 5 years etc.

Can u pls quote the relevant section, case law etc in this regard

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CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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05 March 2009 refer sec 72A