Income Tax Act, 2025
Section 5: Added by Act 20 of 1967, s. 22 (w.e.f. 11967).
5. Added by Act 20 of 1967, s. 22 (w.e.f. 11967).
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(b) if the loss cannot be wholly so set off, the amount of loss not so set off shall, in case the
business so re-established, reconstructed or revived continues to be carried on by the assessee, be
carried forward to the following assessment year and so on for seven assessment years immediately
succeeding.]
(2) Where any allowance or part thereof is, under sub-section (2) of section 32 or sub-section (4)
of section 35, to be carried forward, effect shall first be given to the provisions of this section.
(3) No loss 1[(other than the loss referred to in the proviso to sub-section (1) of this section)] shall be
carried forward under this section for more than eight assessment years immediately succeeding the
assessment year for which the loss was first computed.
2[72A. Provisions relating to carry forward and set off of accumulated loss and unabsorbed
depreciation allowance in amalgamation or demerger, etc.—3[(1) Where there has been an
amalgamation of—
(a) a company owning an industrial undertaking or a ship or a hotel with another company; or
(b) a banking company referred to in clause (c) of section 5 of the Banking Regulation
Act, 1949 (10 of 1949) with a specified bank; or
(c) one or more public sector company or companies engaged in the business of operation of
aircraft with one or more public sector company or companies engaged in similar business,
then, notwithstanding anything contained in any other provision of this Act, the accumulated loss and
the unabsorbed depreciation of the amalgamating company shall be deemed to be the loss or, as the
case may be, allowance for unabsorbed depreciation of the amalgamated company for the previous
year in which the amalgamation was effected, and other provisions of this Act relating to set off and
carry forward of loss and allowance for depreciation shall apply accordingly.]
4[(2) Notwithstanding anything contained in sub-section (1), the accumulated loss shall not be set off
or carried forward and the unabsorbed depreciation shall not be allowed in the assessment of the
amalgamated company unless—
(a) the amalgamating company—
(i) has been engaged in the business, in which the accumulated loss occurred or depreciation
remains unabsorbed, for three or more years;
(ii) has held continuously as on the date of the amalgamation at least three-fourths of the
book value of fixed assets held by it two years prior to the date of amalgamation;
(b) the amalgamated company—
(i) holds continuously for a minimum period of five years from the date of amalgamation at
least three-fourths of the book value of fixed assets of the amalgamating company acquired in a
scheme of amalgamation;
if the loss cannot be wholly so set off, the amount of loss not so set off shall, in case the
business so re-established, reconstructed or revived continues to be carried on by the assessee, be
carried forward to the following assessment year and so on for seven assessment years immediately
succeeding.]
Where any allowance or part thereof is, under sub-section
of section 32 or sub-section
of section 35, to be carried forward, effect shall first be given to the provisions of this section.
No loss 1[(other than the loss referred to in the proviso to sub-section
of this section)] shall be
carried forward under this section for more than eight assessment years immediately succeeding the
assessment year for which the loss was first computed.
2[72A. Provisions relating to carry forward and set off of accumulated loss and unabsorbed
depreciation allowance in amalgamation or demerger, etc.—3[
Where there has been an
amalgamation of—
a company owning an industrial undertaking or a ship or a hotel with another company; or
a banking company referred to in clause
of section 5 of the Banking Regulation
Act, 1949 (10 of 1949) with a specified bank; or
one or more public sector company or companies engaged in the business of operation of
aircraft with one or more public sector company or companies engaged in similar business,
then, notwithstanding anything contained in any other provision of this Act, the accumulated loss and
the unabsorbed depreciation of the amalgamating company shall be deemed to be the loss or, as the
case may be, allowance for unabsorbed depreciation of the amalgamated company for the previous
year in which the amalgamation was effected, and other provisions of this Act relating to set off and
carry forward of loss and allowance for depreciation shall apply accordingly.]
4[
Notwithstanding anything contained in sub-section
the amalgamating company—
has been engaged in the business, in which the accumulated loss occurred or depreciation
remains unabsorbed, for three or more years;
has held continuously as on the date of the amalgamation at least three-fourths of the
book value of fixed assets held by it two years prior to the date of amalgamation;
the amalgamated company—
holds continuously for a minimum period of five years from the date of amalgamation at
least three-fourths of the book value of fixed assets of the amalgamating company acquired in a
scheme of amalgamation;