Income Tax Act, 2025
Section 1: Ins. by Act 14 of 2010, s. 22 (w.e.f. 12011).
1. Ins. by Act 14 of 2010, s. 22 (w.e.f. 12011).
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the loss or allowance for depreciation of the successor limited liability partnership for the purpose of the
previous year in which business reorganisation was effected and other provisions of this Act relating to
set off and carry forward of loss and allowance for depreciation shall apply accordingly:
Provided that if any of the conditions laid down in the proviso to clause (xiiib) of section 47 are not
complied with, the set off of loss or allowance of depreciation made in any previous year in the hands of
the successor limited liability partnership, shall be deemed to be the income of the limited liability
partnership chargeable to tax in the year in which such conditions are not complied with.]
(7) For the purposes of this section,—
1[(a) “accumulated loss” means so much of the loss of the predecessor firm or the proprietary
concern or the private company or unlisted public company before conversion into limited liability
partnership or the amalgamating company or the demerged company, as the case may be, under the
head “Profits and gains of business or profession” (not being a loss sustained in a speculation
business) which such predecessor firm or the proprietary concern or the company or amalgamating
company or demerged company, would have been entitled to carry forward and set off under the
provisions of section 72if the reorganisation of business or conversion or amalgamation or demerger
had not taken place;]
2[(aa) “industrial undertaking” means any undertaking which is engaged in—
(i) the manufacture or processing of goods; or
(ii) the manufacture of computer software; or
(iii) the business of generation or distribution of electricity or any other form of power; or
3[(iiia) the business of providing telecommunication services, whether basic or cellular,
including radio paging, domestic satellite service, network of trunking, broadband network and
internet services; or]
(iv) mining; or
(v) the construction of ships, aircrafts or rail systems;]
(b) “unabsorbed depreciation” means so much of the allowance for depreciation of the
predecessor firm or the proprietary concern or the private company or unlisted public company before
conversion into limited liability partnership or the amalgamating company or the demerged company,
as the case may be, which remains to be allowed and which would have been allowed to the
predecessor firm or the proprietary concern or the company or amalgamating company or demerged
company, as the case may be, under the provisions of this Act, if the reorganisation of business or
conversion or amalgamation or demerger had not taken place;]
4[(c) “specified bank” means the State Bank of India constituted under the State Bank of India
Act, 1955 (23 of 1955) or a subsidiary bank as defined in the State Bank of India (Subsidiary Banks)
Act, 1959 (38 of 1959) or a corresponding new bank constituted under section 3 of the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or under section 3 of
the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980).]
of section 47 are not
complied with, the set off of loss or allowance of depreciation made in any previous year in the hands of
the successor limited liability partnership, shall be deemed to be the income of the limited liability
partnership chargeable to tax in the year in which such conditions are not complied with.]
For the purposes of this section,—
1[
“accumulated loss” means so much of the loss of the predecessor firm or the proprietary
concern or the private company or unlisted public company before conversion into limited liability
partnership or the amalgamating company or the demerged company, as the case may be, under the
head “Profits and gains of business or profession” (not being a loss sustained in a speculation
business) which such predecessor firm or the proprietary concern or the company or amalgamating
company or demerged company, would have been entitled to carry forward and set off under the
provisions of section 72if the reorganisation of business or conversion or amalgamation or demerger
had not taken place;]
2[
“industrial undertaking” means any undertaking which is engaged in—
the manufacture or processing of goods; or
the manufacture of computer software; or
the business of generation or distribution of electricity or any other form of power; or
3[
the business of providing telecommunication services, whether basic or cellular,
including radio paging, domestic satellite service, network of trunking, broadband network and
internet services; or]
mining; or
the construction of ships, aircrafts or rail systems;]
“unabsorbed depreciation” means so much of the allowance for depreciation of the
predecessor firm or the proprietary concern or the private company or unlisted public company before
conversion into limited liability partnership or the amalgamating company or the demerged company,
as the case may be, which remains to be allowed and which would have been allowed to the
predecessor firm or the proprietary concern or the company or amalgamating company or demerged
company, as the case may be, under the provisions of this Act, if the reorganisation of business or
conversion or amalgamation or demerger had not taken place;]
4[
“specified bank” means the State Bank of India constituted under the State Bank of India
Act, 1955 (23 of 1955) or a subsidiary bank as defined in the State Bank of India (Subsidiary Banks)
Act, 1959 (38 of 1959) or a corresponding new bank constituted under section 3 of the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or under section 3 of
the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980).]