Amendment to [ Section-79 ] w.e.f. Assessment Year 2019-2020 under Income Tax Act.
Section 79, inter alia, provides that where a change in shareholding has taken place in a previous year in the case of a closely held company, no loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year unless on the last day of the previous year the shares of the company carrying not less than 51 per cent of the voting power were beneficially held by persons who beneficially held shares of the company carrying not less than 51 per cent of the voting power on the last day of the year or years in which the loss was incurred.
Amendment - The above provisions of section 79 have been amended (with effect from the assessment year 2018-19). After the amendment, section 79 shall not apply to a company where a change in the shareholding takes place in a previous year pursuant to approved resolution plan under the Insolvency and Bankruptcy Code, 2016, after affording a reasonable opportunity of being heard to the jurisdictional Principal CIT/CIT.
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