Income Tax Ordinance, 2001

CHAPTER-III

TAX ON TAXABLE INCOME PART VII EXEMPTIONS AND TAX CONCESSIONS

From: 2023-07-01 - To: 0000-00-00 1[***] _________________________________________________________________ 1-Section “59C” omitted by substituted by Finance Act, 2022, dated 30-06-2022, with effect from 2nd March, 2022. Earlier Section “59C” inserted by Income Tax (Amendment) Ordinance, 2022, dated 03-03-2022. Before omission section “59C” read as: “59C. Carry forward of business losses of sick industrial units.- (1) Subject to sub-section (2), where a company hereinafter referred to as acquiring company, acquires under a scheme of acquisition majority share capital of another company being a sick industrial unit, hereinafter referred to ns acquired company, the acquiring company shall be entitled to adjust toss for the latest tax year and brought forward assessed business losses excluding capital loss of the acquired company subject to provisions of section 57 for a period of three years. (2) Sub-section (1) shall apply subject to the following conditions, namely:- (a) there is continued ownership for live years starting from the 30th June, 2023 and there is no change in share capital of the acquiring company; (b) the assets of the acquired company shall not be sold upto the 30th June, 2026; and (c) the acquired company continues the same business till the 30th June, 2026. (3) Where the losses surrendered by the acquired company are not adjusted against income of the acquiring company in the sard three tax years, the acquired company shall carry forward the unadjusted losses in accordance with section 57. (4) The loss of the acquired company referred to in sub-section (1) shall be adjusted against income under the head “income from business” of the acquiring company as per following formula, namely:- (A/100) x B Where- A is the percentage share capital held by the acquiring company of the acquired company; and B is the loss of the acquired company referred to in sub-section (1). (5) If the acquiring company fails to revive the acquired company by tax year 2026, the acquiring company shall, in tax year 2027 offer the amount of profit on which taxes have not been paid due to set off of losses surrendered by the acquired company. (6) For the removal of doubt,…