Section 72AA of Income Tax Act "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"
72AA. 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-
(i) one or more 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); or
(ii) one or more corresponding new bank or banks with any
other corresponding new bank under a scheme brought into
force by the Central Government under section 9 of the
Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970 (5 of 1970) or under section 9 of the Banking
Companies (Acquisition and Transfer of Undertakings) Act,
1980 (40 of 1980) or both, as the case may be; or
(iii) one or more Government company or companies with any
other Government company under a scheme sanctioned and
brought into force by the Central Government under section
16 of the General Insurance Business (Nationalisation) Act,
1972 (57 of 1972), the accumulated loss and the unabsorbed
depreciation of such banking company or companies or
amalgamating corresponding new bank or banks or amalgamating
Government company or companies shall be deemed to be the
loss or, as the case may be, allowance for depreciation of
such banking institution or amalgamated corresponding new
bank or amalgamated Government company 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 or companies or amalgamating
corresponding new bank or banks or amalgamating Government
company or companies under the head "Profits and gains of
business or profession" (not being a loss sustained in a
speculation business) which such amalgamating banking
company or companies or amalgamating corresponding new bank
or banks or amalgamating Government company or companies,
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 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 meaning assigned
to it in sub-section (15) of section 45 of the Banking
Regulation Act, 1949 (10 of 1949);
(iv) "corresponding new bank" shall have the meaning
assigned to it in clause (d) of section 2 of the Banking
Companies (Acquisition and Transfer of Undertakings) Act,
1970 (5 of 1970) or, as the case may be, clause (b) of
section 2 of the Banking Companies (Acquisition and Transfer
of Undertakings) Act, 1980 (40 of 1980);
(v) "general insurance business" shall have the meaning
assigned to it in clause (g) of section 3 of the General
Insurance Business (Nationalisation) Act, 1972 (57 of 1972);
(vi) "Government company" means a Government company as
defined in clause (45) of section 2 of the Companies Act,
2013 (18 of 2013), which is engaged in the general insurance
business and which has come into existence by operation of
section 4 or section 5 or section 16 of the General
Insurance Business (Nationalisation) Act, 1972 (57 of 1972);
(vii) "unabsorbed depreciation" means so much of the
allowance for depreciation of the amalgamating banking
company or companies or amalgamating corresponding new bank
or banks or amalgamating Government company or companies
which remains to be allowed and which would have been
allowed to such banking company or companies or amalgamating
corresponding new bank or banks or amalgamating Government
company or companies, if the amalgamation had not taken
place.]