Holding Company’s Share Issue Cannot Secure Section 72A(4) Demerger Benefit: ITAT Mumbai

Sterling Holiday Resorts Limited Vs DCIT (ITAT Mumbai) Holding company couldn’t issue shares on behalf of subsidiary to claim demerger tax benefit: ITAT Mumbai Conclusion: Disallowance of assessee’s claim was upheld for set-off of brought forward unabsorbed depreciation and carry forward of business losses and unabsorbed depreciation of the demerged company under section 72A(4), holding that failure to satisfy the mandatory condition of issuing shares to the demerged company disentitled the assessee from claiming the statutory benefit. A holding company cannot issue shares on behal...