Income Tax Act, 2025
Section 4: Ins. by Act 32 of 2003, s. 33 (w.e.f. 12004).
4. Ins. by Act 32 of 2003, s. 33 (w.e.f. 12004).
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1[72AA. Provisions relating to carry forward and set-off of accumulated loss and unabsorbed
depreciation allowance in scheme of amalgamation of banking company in certain cases.—
Notwithstanding anything contained in sub-clauses (i) to (iii) of clause (1B) of section 2 or section 72A
where there has been an amalgamation of a banking company with any other banking institution under a
scheme sanctioned and brought into force by the Central Government under sub-section (7) of section 45
of the Banking Regulation Act, 1949 (10 of 1949), the accumulated loss and the unabsorbed depreciation
of such banking company shall be deemed to be the loss or, as the case may be, allowance for
depreciation of such banking institution for the previous year in which the scheme of amalgamation was
brought into force and other provisions of this Act relating to set-off and carry forward of loss and
allowance for depreciation shall apply accordingly.
Explanation.—For the purposes of this section,—
(i) “accumulated loss” means so much of the loss of the amalgamating banking company under
the head “Profits and gains of business or profession” (not being a loss sustained in a speculation
business) which such amalgamating banking company, would have been entitled to carry forward and
set-off under the provisions of section 72 if the amalgamation had not taken place;
(ii) “banking company” shall have the same meaning assigned to it in clause (c) of section 5 of
the Banking Regulation Act, 1949 (10 of 1949);
(iii) “banking institution” shall have the same meaning assigned to it in sub-section (15) of
section 45 of the Banking Regulation Act, 1949 (10 of 1949);
(iv) “unabsorbed depreciation” means so much of the allowance for depreciation of the
amalgamating banking company which remains to be allowed and which would have been allowed to
such banking company if amalgamation had not taken place.]
2[72AB. Provisions relating to carry forward and set off of accumulated loss and unabsorbed
depreciation allowance in business reorganisation of co-operative banks.—(1) The assessee, being a
successor co-operative bank, shall, in a case where the amalgamation has taken place during the previous
year, be allowed to set off the accumulated loss and the unabsorbed depreciation, if any, of the
predecessor co-operative bank as if the amalgamation had not taken place, and all the other provisions of
this Act relating to set off and carry forward of loss and allowance for depreciation shall apply
accordingly.
(2) The provisions of this section shall apply if—
(a) the predecessor co-operative bank—
(i) has been engaged in the business of banking for three or more years; and
(ii) has held at least three-fourths of the book value of fixed assets as on the date of the
business reorganisation, continuously for two years prior to the date of business reorganisation;
(b) the successor co-operative bank—
(i) holds at least three-fourths of the book value of fixed assets of the predecessor
co-operative bank acquired through business reorganisation, continuously for a minimum period
of five years immediately succeeding the date of business reorganisation;
(ii) continues the business of the predecessor co-operative bank for a minimum period of five
years from the date of business reorganisation; and
(iii) fulfils such other conditions as may be prescribed to ensure the revival of the business of
the predecessor co-operative bank or to ensure that the business reorganisation is for genuine
business purpose.
to
of clause
of section 2 or section 72A
where there has been an amalgamation of a banking company with any other banking institution under a
scheme sanctioned and brought into force by the Central Government under sub-section
of section 45
of the Banking Regulation Act, 1949 (10 of 1949), the accumulated loss and the unabsorbed depreciation
of such banking company shall be deemed to be the loss or, as the case may be, allowance for
depreciation of such banking institution for the previous year in which the scheme of amalgamation was
brought into force and other provisions of this Act relating to set-off and carry forward of loss and
allowance for depreciation shall apply accordingly.
Explanation.—For the purposes of this section,—
“accumulated loss” means so much of the loss of the amalgamating banking company under
the head “Profits and gains of business or profession” (not being a loss sustained in a speculation
business) which such amalgamating banking company, would have been entitled to carry forward and
set-off under the provisions of section 72 if the amalgamation had not taken place;
“banking company” shall have the same meaning assigned to it in clause
of section 5 of
the Banking Regulation Act, 1949 (10 of 1949);
“banking institution” shall have the same meaning assigned to it in sub-section
of
section 45 of the Banking Regulation Act, 1949 (10 of 1949);
“unabsorbed depreciation” means so much of the allowance for depreciation of the
amalgamating banking company which remains to be allowed and which would have been allowed to
such banking company if amalgamation had not taken place.]
2[72AB. Provisions relating to carry forward and set off of accumulated loss and unabsorbed
depreciation allowance in business reorganisation of co-operative banks.—
The assessee, being a
successor co-operative bank, shall, in a case where the amalgamation has taken place during the previous
year, be allowed to set off the accumulated loss and the unabsorbed depreciation, if any, of the
predecessor co-operative bank as if the amalgamation had not taken place, and all the other provisions of
this Act relating to set off and carry forward of loss and allowance for depreciation shall apply
accordingly.
The provisions of this section shall apply if—
the predecessor co-operative bank—
has been engaged in the business of banking for three or more years; and
has held at least three-fourths of the book value of fixed assets as on the date of the
business reorganisation, continuously for two years prior to the date of business reorganisation;
the successor co-operative bank—
holds at least three-fourths of the book value of fixed assets of the predecessor
co-operative bank acquired through business reorganisation, continuously for a minimum period
of five years immediately succeeding the date of business reorganisation;
continues the business of the predecessor co-operative bank for a minimum period of five
years from the date of business reorganisation; and
fulfils such other conditions as may be prescribed to ensure the revival of the business of
the predecessor co-operative bank or to ensure that the business reorganisation is for genuine
business purpose.