79. Carry forward
and set off of losses in the case of certain companies.-
Notwithstanding anything contained in this Chapter, where
a change in shareholding has taken place in a previous year
in the case of a company, not being a company in which the
public are substantially interested, no loss incurred in any
year prior to the previous year shall be carried forward and
set off against the income of the previous year unless—
(a) on the last day of the previous year the shares of the
company carry-ing not less than fifty-one per cent of the
voting power were beneficially held by persons who beneficially
held shares of the company carrying not less than fifty-one
per cent of the voting power on the last day of the year or
years in which the loss was incurred :
Provided that nothing contained in this section shall apply
to a case where a change in the said voting power takes place
in a previous year consequent upon the death of a shareholder
or on account of transfer of shares by way of gift to any
relative of the shareholder making such gift :
Provided further that nothing contained in this section
shall apply to any change in the shareholding of an Indian
company which is a subsidiary of a foreign company as a result
of amalgamation or demerger of a foreign company subject to
the condition that fifty-one per cent shareholders of the
amalgamating or demerged foreign company continue to be the
shareholders of the amalgamated or the resulting foreign company.
(b) [Omitted by the Finance Act, 1988, w.e.f. 1-4-1989.]
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