In case of demerger, the Carry forward and set off of accumulated losses and unabsorbed depreciation which is directly related to the undertaking transferred by demerged company to the resulting company is allowed to the :
A. Demerged Company only
B. Resulting Company only
C. Both the companies in proportion to value of assets retained and trans-ferred.
D. Not allowed
Answer:A
In case of demerger, the Carry forward and set off of accumulated losses and unabsorbed depreciation which is directly related to the undertaking transferred by demerged company to the resulting company is allowed to the :
A. Demerged Company only B. Resulting Company only C. Both the companies in proportion to value of assets retained and trans-ferred. D. Not allowed