AO held that as per Form 62 filed by assessee, it had manufactured only 10.76 per cent of total installed capacity of amalgamating company . Accordingly the AO  held that  provisions of section 72A read with rule 9C on ground that assessee had not achieved 50 per cent level of production of installed capacity of amalgamating company and, thus, carried forward business losses and unabsorbed depreciation pertaining to amalgamating company could not be allowed to be set off in hands of assessee-company. Tribunal held that  the  assessee achieved more than 50 per cent of production in first year, however, it failed to achieve more than 50 per cent of production in second year, i.e., year under consideration due to labour disputes however other conditions of section 72A read with rule 9C with respect to holding three-fourth of book value of assets of amalgamating company, furnishing of certificate of an accountant in Form 62 showing level of production, etc., were complied with and, at time of completion of assessment, period of four years had not expired from date of amalgamation. Accordingly carried forward business losses and unabsorbed depreciation pertaining to amalgamating company could be allowed to be set off. (AY. 2010-11)