Section 72AB of ITA, 1961 : Section 72Ab: Provisions Relating To Carry Forward And Set-Off Of Accumulated Loss And Unabsorbed Depreciation Allowance In Business Reorganisation Of Co-Operative Banks

Explanation using Example

Imagine that there are two co-operative banks, 'Bank A' and 'Bank B'. Bank A has been suffering losses for the past few years and has a significant amount of unabsorbed depreciation on its books. To strengthen its financial position and streamline operations, Bank A decides to amalgamate with the more stable Bank B, creating a successor co-operative bank, 'Bank AB'.

Under Section 72AB of the Income-tax Act, 1961, Bank AB would be allowed to set off the accumulated losses...

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