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4. Aspinwall and Co. Ltd. Vs. Inspecting Assistant Commissioner
Civil Appeal No. 7796 of 2012 and Ors. decided on 13.04.2026
Kerala Agricultural Income Tax Act, 1991 - Accumulated losses - Set off in hands of amalgamated company - The accumulated losses in the balance sheet of amalgamating company could not be set-off against the income of the amalgamated company – Even otherwise the losses pertained to a period beyond 8 years the same could not be set off
A company named "Pullangode Rubber & Produce Co. Ltd." was amalgamated with the Appellant company. The scheme of amalgamation was sanctioned in November 2006. The appointed date was fixed as 01.01.2006. As there were accumulated losses in the balance sheet of amalgamating company, the issue is, as to whether the same could be claimed as a set-off against the income of the amalgamated company.
According to the Appellant, in terms of the provisions of Section 54 of the Kerala Agricultural Income Tax Act, 1991, the amalgamated company as successor of the amalgamating company shall be entitled to set-off of the losses suffered. In terms of Section 12 of the Kerala Act, the losses suffered by an Assessee can be carried forward for a period of 8 years for set-off against the income of subsequent y
