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Consider the given statements: (I) On amalgamation, the business of the transferor company does not…

By the statutory fiction governing amalgamation under the Income-tax Act, the transferor's business is deemed to continue in the hands of the transferee, which is treated as…

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Consider the given statements:
(I) On amalgamation, the business of the transferor company does not cease, but is deemed to continue.
(II) Under various provisions of the Income Tax Act, transferee is deemed to carry on the enterprise as that of the transferor.

Select one answer
Answer and explanation

Correct answer A

By the statutory fiction governing amalgamation under the Income-tax Act, the transferor's business is deemed to continue in the hands of the transferee, which is treated as carrying on the enterprise, so "Both (I) and (II) are true."

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