Examine how do you treat the following items when X Ltd. is merging with Y Ltd. on 1stJanuary 2023 on the assumption:A.Condition u/s 2(1B) and u/s 72A does not satisfyB. Condition u/s 2(1B) satisfy but conditions u/s 72A not satisfyC. Conditions u/s 2(1B) and u/s 72A are satisfiedOther Information of X Ltd.:(i) Business Profits (before adjusting losses and expenses)*60,000(ii) Expenses on merger*2,00,000(iii) VRS Compensation (Paid during 2020-21)*4,00,000(iv) Sale consideration of non-depreciable capital assets*20,00,00(v) Indexed cost of acquisition of non-depreciable capital assets*12,00,000(vi) Sale consideration of depreciable assets*10,00,000(vii) WDV of depreciable assets*7,00,000(viii) Non-speculation business loss relating to 1994-95*3,00,000(ix) Unabsorbed depreciation relating to 2020-211,50,000(x) Long term Capital loss relating to 2021-22*2,00,000Business profits of Y Ltd. (before adjusting losses and expenses) ₹30,00,000 and long termcapital gain of Y Ltd. (before adjusting losses) ₹3,00,000[7]

If both are not satisfied,X Ltd: (Rs)Business…

Examine how do you treat the following items when X Ltd. is merging with Y Ltd. on 1st January 2023 on the assumption: A. Condition u/s 2(1B) and u/s 72A does not satisfy B. Condition u/s 2(1B) satisfy but conditions u/s 72A not satisfy C. Conditions u/s 2(1B) and u/s 72A are satisfied Other Information of X Ltd.: (i) Business Profits (before adjusting losses and expenses) (ii) Expenses on merger (iii) VRS Compensation (Paid during 2020-21) (iv) Sale consideration of non-depreciable capital assets *60,000 *2,00,000 *4,00,000 *20,00,00 (v) Indexed cost of acquisition of non-depreciable capital assets *12,00,000 (vii) WDV of depreciable assets (ix) Unabsorbed depreciation relating to 2020-21 (x) Long term Capital loss relating to 2021-22 (vi) Sale consideration of depreciable assets (viii) Non-speculation business loss relating to 1994-95 *10,00,000 *7,00,000 3,00,000 1,50,000 2,00,000 Business profits of Y Ltd. (before adjusting losses and expenses) 30,00,000 and long term capital gain of Y Ltd. (before adjusting losses) ₹3,00,000 [7]

Examine how do you treat the following items when X Ltd. is merging with Y Ltd. on 1st January 2023 on the assumption: A. Condition u/s 2(1B) and u/s 72A does not satisfy B. Condition u/s 2(1B) satisfy but conditions u/s 72A not satisfy C. Conditions u/s 2(1B) and u/s 72A are satisfied Other Information of X Ltd.: (i) Business Profits (before adjusting losses and expenses) (ii) Expenses on merger (iii) VRS Compensation (Paid during 2020-21) (iv) Sale consideration of non-depreciable capital assets 60,000 2,00,000 4,00,000 20,00,00 (v) Indexed cost of acquisition of non-depreciable capital assets 12,00,000 (vii) WDV of depreciable assets (ix) Unabsorbed depreciation relating to 2020-21 (x) Long term Capital loss relating to 2021-22 (vi) Sale consideration of depreciable assets (viii) Non-speculation business loss relating to 1994-95 10,00,000 *7,00,000 3,00,000 1,50,000 2,00,000 Business profits of Y Ltd. (before adjusting losses and expenses) 30,00,000 and long term capital gain of Y Ltd. (before adjusting losses) ₹3,00,000 [7]

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter13: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 25DQ

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