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]
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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)
*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 2020-21
1,50,000
(x) Long term Capital loss relating to 2021-22
*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]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F48c74239-65e4-4b4b-b0a6-cbbedbfd4f5f%2F7fb511be-8277-4cd8-81a2-46a8ead06975%2F8nzimj_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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)
*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 2020-21
1,50,000
(x) Long term Capital loss relating to 2021-22
*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]
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