Chintan Shah (-) (534 Points)
18 June 2010Friends,
There is a company A. It is amalgamated company. The company B is amalgamating comapny and is a sick company. The sick company is earning profits. After amalgamation company A's profits will include the profits of company B i.e. sick company. Will the company A get reduction of such profits for the purpose of computation of book profits u/s 115JB as per clause vii of explanation 1? Please provide decision of some court in support of your answer.
Regards,
Chintan
Chintan Shah
(-)
(534 Points)
Replied 19 June 2010
Friends please answer this.... if any clarification is needed please do feel free to ask.. i ll be morethan happy to clarify...but please post your opinion along with support of decisions.... Thanks in advance
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 19 June 2010
Since the company A is the amalgamated company for the purpose of book profit entire profit of A & B will be considered as there is now no seperate company A & B as A is the only surviving company after the completion of the merger.
CAclubindia
