Sec 10B exemption

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sangeetha (Querist)
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09 July 2011 A pvt ltd co. was started by taking ongoing business of another pvt ltd co. on Feb 2010. The company's principal business is process outsourcing and it is a EOU. Is the co is eligible for 10B exemption?

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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10 July 2011 Section 10B(7A) provides that where any undertaking of an Indian company which is entitled to the deduction under section 10B 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, 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.
I BELEIVE IN UR CASE THERE IS NO AMALGAMATION/MERGER SO THE EXEMPTION MAY NOT BE AVAILABLE
IT IS FIRST AND FOREMOST CONDITION THAT THE UNDERTAKING CLAIMING EX SHALL NOT BE FORMED BY RECONSTRUCTION/TRANSFER OF AN EXISTING BUSINESS\
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