change in shareholding pattern

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sneha (Querist)
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10 January 2011 we (company)change the 100% shareholding pattern .so whats is the guidelines against carry forward losses and unabsorbed depriciation?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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10 January 2011 In case u are a company in which public is not substantially interested then the carry forward losses will lapse. However unabsorbed depreciation can be carried forward.

Section 79 applies to all losses. However, it has been decided in CIT v Concord Industries Ltd. (1979) 119 ITR 458 (Mad) and CIT v. Shri Subbulaxmi Mills Ltd. 249 ITR 795 (SC) that the overriding provisions of section 79 do not affect the set off of unabsorbed depreciation which is governed by section 32(2).