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11. BUSINESS TRANSFORMATION AND RE-ORGANIZATION

Business re-organisations namely, transferring of all assets and liabilities by one company to another or one company merging with another company, are covered under ‘Amalgamation’ provisions of the Act.

The tax liability of the amalgamating companies is fulfilled either at the time of amalgamation or at the time of filing of tax return by the amalgamated company, subject to certain conditions.

Losses of prior years of the transferor company cannot be offset against the profits of the amalgamated company.