Clarification regarding exemption in himachal pradesh and ut

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2012 If we want to acquire a running Pharmaceutical company in Himachal Pradesh, will the benefit of both Excise and Income Tax will continue to receive. If we merge the company to the acquiring company in this case, all the benefit would continue to receive for 10 years

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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14 October 2012 SECTION 80IA(12) AND 80-IA(12A) PROVIDES AS UNDER
(12) Where any undertaking of an Indian company which is entitled to the deduction under this section is transferred, before the expiry of the period specified in this section, to another Indian company in a scheme of amalgamation or demerger —
(a) no deduction shall be admissible under this section to the amalgamating or the demerged company for the previous year in which the amalgamation or the demerger takes place; and
(b) the provisions of this section shall, as far as may be, apply to the amalgamated or the resulting company as they would have applied to the amalgamating or the demerged company if the amalgamation or demerger had not taken place.]
(12A) Nothing contained in sub-section (12) shall apply to any enterprise or undertaking which is transferred in a scheme of amalgamation or demerger on or after the 1st day of April, 2007.
SINCE BY VIRTUE OF SECTION 80IC(7) PROVISIONS OF SECTION 80IA(12) APPLY TO SECTION 80IC UNITS HENCE MERGER WILL RESULT IN DENIAL OF DEDUCTION