Compliance with conditions u/s 72A is to be tested in relation to each amalgamating company

During the AY 2004-05, BTPU and BSPPL amalgamated with the taxpayer. The taxpayer claimed set-off of losses of BTPU under section 72A. The AO disallowed the set-off of loss brought forward on the basis that the taxpayer failed to:

• Hold three-fourth of the book value of fixed assets of amalgamating company for a continuous period of five years;

• Achieve the production of 50 percent of the installed capacity of the amalgamating company as per Rule 9C within a period of three years and nine months; and
• Furnish the cert

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