Our Group Company A has lend other group company B a unsecured loan of Rs 7 crores .Four years back
Company A was in resturant business and suffered heavy losses and at present Accumulated income tax loss is Rs 15 Crores . Since the company A left with no Funds to repay the amount to creditors .
Company B has no options just to outright purchase the business of company to adjust the loan outstanding .
How shall the company B shall reflect the business takeover of A as per Income tax .
Also please advise under what provision of income tax , tax benefit of carried forward income tax loss can be a availed also if you can mark your email id in reply
03 November 2008
In the case of slump sale it is section 50B. No carried forward losses arise in the case of slump sale. Section 72A in the case of Amalgamation
CAclubindia
