| Question And Answer | |
|---|---|
| Subject: | Carry forward of losses section 79 |
| Category: | Income-Tax |
| Querist: | Vidhya Chandra |
| Answered by: | Research Team |
| Tags: | Carry forward of losses |
| Date: | April 1, 2023 |
Background
As on 01 April 2022, Company ‘B’ Private Ltd (‘Co. B’) is a wholly owned subsidiary of Company ‘A’ Ltd (‘Co. A’), which is a listed Company. On sale of shares of Co. B by Co. A, owing to application of Section 79 of the Act what will be the fate of brought forward losses amounting to INR 100.
Scenarios
- Co. B sell its entire shareholding in Co. A to a Listed Company
- Co. B sell its entire shareholding in Co. A to a private limited Company which is a wholly owned subsidiary of the listed Company
- Co. B sell its entire shareholding in Co. A to a private limited Company
One has to study the facts before giving an answer, hence the question is not answered.
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