As per section 2(1B) of the Income Tax Act, 1961, which out of the following is not a requirement for amalgamation of two companies :

CS Executive · Tax Laws · PYQS · June 2022
As per section 2(1B) of the Income Tax Act, 1961, which out of the following is not a requirement for amalgamation of two companies :
(A) All the assets are transferred from amalgamating company to amalgamated company
(B) More than 50% of the directors of the amalgamating company become directors of the amalgamated company
(C) All liabilities including contingent liabilities are transferred from amalgamating company to amalgamated company
(D) Shareholders having 3/4th in value of shares of the amalgamating company become shareholders of the amalgamated company

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Income Tax Act, 1961

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