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 1[97A. Disposal of asset under a scheme of arrangement and reconstruction.- (1) No gain or loss shall be taken to arise on disposal of asset from one company (hereinafter referred to as the “transferor”) to another company (hereinafter referred to as the “transferee”) by virtue of operation of a Scheme of Arrangement and Reconstruction under sections 282L and 284 to 287 of the 2[Companies Act, 2017 (XIX of 2017)] or section 48 of the Banking Companies Ordinance, 1962 (LVII of 1962), if the following conditions are satisfied, namely:- (a) the transferee must undertake to discharge any liability in respect of the asset acquired; (b) any liability in respect of the asset must not exceed the transferor’s cost of the asset at the time of the disposal; (c) the transferee must not be exempt from tax for the tax year in which the disposal takes place; and (d) scheme is approved by the High Court, State Bank of Pakistan or Securities and Exchange Commission of Pakistan, as the case may be, on or after first day of July, 2007. (2) No gain or loss shall be taken to arise on issue, cancellation, exchange or receipt of shares as a result of Scheme of Arrangement and Reconstruction under sections 282L and 284 to 287 of the 2[Companies Act, 2017 (XIX of 2017)] or section 48 of the Banking Companies Ordinance, 1962 (LVII of 1962) and approved by:- (a) the High Court; (b) State Bank of Pakistan; or (c) Securities and Exchange Commission of Pakistan, as the case may be, on or after first day of July, 2007. (3) 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 acquisition of the asset shall be- (i) in the case of a depreciable asset or…