Income Tax Ordinance, 2001

CHAPTER-V

PROVISIONS GOVERNING PERSONS PART IV COMPANIES

Income Tax Ordinance, 2001 CHAPTER-V PROVISIONS GOVERNING PERSONS PART IV COMPANIES From: 2024-12-29 - To: 0000-00-00 97. Disposal of asset between wholly-owned companies.- (1) Where a resident company (hereinafter referred to as the “transferor”) disposes of an asset to another resident company (hereinafter referred to as the “transferee”), no gain or loss shall be taken to arise on the disposal if the following conditions are satisfied, namely:- (a) Both companies belong to a wholly-owned group of 1[resident] company at the time of the disposal; (b) the transferee must undertake to discharge any liability in respect of the asset acquired; (c) any liability in respect of the asset must not exceed the transferor’s cost of the asset at the time of the disposal; and (d) the transferee must not be exempt from tax for the tax year in which the disposal takes place. (2) Where sub-section (1) applies - (a) the asset acquired by the transferee shall be treated as having the same character as it had in the hands of the transferor; (b) the transferee’s cost in respect of the acquisition of the asset shall be - (i) in the case of a depreciable asset or amortized intangible, the written down value of the asset or intangible immediately before the disposal; (ii) in the case of stock-in-trade valued for tax purposes under sub-section (4) of section 35 2[***], that value; or (iii) in any other case, the transferor’s cost at the time of the disposal; (c) if, immediately before the disposal, the transferor has…