A scheme of amalgamation between Beta Manufacturing Ltd. (amalgamating company) and Gunjan Industries Ltd. (amalgamated company) was approved by the National Company law Tribunal. The amalgamation of two companies became

CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · PYQS · June 2026
A scheme of amalgamation between Beta Manufacturing Ltd. (amalgamating company) and Gunjan Industries Ltd. (amalgamated company) was approved by the National Company law Tribunal. The amalgamation of two companies became effective from 1st April, 2025. The following business losses and unabsorbed depreciation of Beta Manufacturing Ltd. are given below: Assessment Year Business Loss (₹) Unabsorbed Depreciation (₹) A.Y. 2017-18 25,00,000 10,00,000 A.Y. 2018-19 18,00,000 5,00,000 A.Y. 2024-25 12,00,000 6,00,000 A.Y. 2025-26 35,00,000 — Other Information: (1) The amalgamated company had a net profit of ₹ 20,00,000 before set-off of losses for the Financial Year 2025-26. (2) All the conditions specified under Section 72A of the Income-tax Act, 1961, as amended by the Finance Act, 2025, for the carry forward of losses and unabsorbed depreciation in the case of amalgamation are satisfied. (3) Gunjan Industries Ltd. has not opted for the provision of section 115BAA. Based on the above information, answer the following: Determine the losses and unabsorbed depreciation that can be carried forward by Gunjan Industries Ltd. and state the last assessment year up to which such losses and unabsorbed depreciation are allowed to be carried forward.

Answer & Explanation:

Computation of carry forward of Business Losses and maximum period for set-off Assessment Year Carry forward-loss (₹) Last AY for Set-off (Total 8 years rule) A.Y. 2017-18 Nil No Carry forward (Since maximum period of 8 year has been expired) A.Y. 2018-19 Nil No Carry forward (Since fully utilized against profit of A.Y. 2026-27) A.Y. 2024-25 10,00,000 (12,00,000 - 2,00,000) Carry forward up to A.Y. 2032-33 A.Y. 2025-26 35,00,000 Carry forward up to A.Y. 2033-34 Computation of carry forward of unabsorbed depreciation and maximum period for set-off Assessment Year Carry forward Unabsorbed Depreciation (₹) Last AY for Set-off A.Y. 2017-18 10,00,000 Indefinite Period A.Y. 2018-19 5,00,000 Indefinite Period A.Y. 2024-25 6,00,000 Indefinite Period A.Y. 2025-26 -- --

Topics: Corporate Tax Planning

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