According to section 2(1B), "amalgamation, in relation to companies means, the merger of one or more companies with another company or the merger of two or more companies to form one company" provided all conditions exce

CS Executive · Tax Laws and Practice · PYQS · December 2014
According to section 2(1B), "amalgamation, in relation to companies means, the merger of one or more companies with another company or the merger of two or more companies to form one company" provided all conditions except the following are satisfied: —
(A) All assets to be transferred from amalgamating company to the amalgamated company
(B) All liabilities including contingent liabilities to be transferred from amalgamating company to amalga-mated company
(C) Shareholders holding at least 3/4th in value of shares of the amalgamating company should become shareholders of the amalgamated company
(D) Shareholders holding at least 9/10th in value of shares of the amalgamating company should become shareholders of the amalgamated company.

Answer & Explanation:

Correct Answer: Option (D)

Correct answer: (D) Shareholders holding at least 9/10th in value of shares of the amalgamating company should become shareholders of the amalgamated company.. This answer applies to the historical law and assessment-year context of this December 2014 paper; later amendments may differ.

Topics: Income Tax Act, 1961

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