Amalgamated Company Can Adjust Written Down Assets Of Constituent Companies & Claim Depreciation Without Central Govt Approval: Bombay HC

Bombay High Court held that an amalgamated company can adjust the written down value of assets of amalgamating companies and claim depreciation without central government approval. The court interpreted the relevant provisions of the Income Tax Act related to mergers and allowed the carry forward and adjustment of asset values for depreciation purposes without the need for specific approval. This ruling simplifies the tax implications of mergers and amalgamations, reducing administrative hurdles and facilitating corporate restructuring by streamlining the depreciation claims for the surviving entity.