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 s pecified 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 pro vision 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 b e 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 com pany - (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;