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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Tax Planning and Business Restructuring

Under the Income-tax Act, 2025, which of the following is a 'successor' for the purpose of the provision on the effect of an order in respect of business reorganisation?

A successor means all resulting companies in a business reorganisation, whether or not the company was in existence before the reorganisation. It is not limited to existing companies or to the one acquiring the largest undertaking.

  1. AAll resulting companies in the reorganisation, whether or not they existed before itCorrect
  2. BOnly the resulting company that existed before the reorganisation
  3. COnly the amalgamating company that is dissolved
  4. DOnly the resulting company that takes over the largest undertaking

Explanation

The definition covers all resulting companies, including newly formed ones. Limiting it to pre-existing companies or the largest one contradicts the text.

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