In case of demerger, the carry forward and set off of accumulated losses and un-absorbed depreciation which is not 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 ie. demerged Co. and resulting Co. in proportion to value of assets retained and transferred.
D. Not allowed
Answer:C
In case of demerger, the carry forward and set off of accumulated losses and un-absorbed depreciation which is not 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 ie. demerged Co. and resulting Co. in proportion to value of assets retained and transferred. D. Not allowed