# The Finance Act, 1967, Section 16: Amendment of section 43

- Act: The Finance Act, 1967 (Act 20 of 1967)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-1967/section/16/

## Text

Amendment of section 43 16. In section 43 of the Income-tax Act,— (i) in clause (1), after Explanation 6, the following Explanation shall be inserted, namely:— "Explanation 7.—Where, in a scheme of amalgamation any capital asset is transferred by the amalgamating company to the amalgamated company and the amalgamated company is an Indian company, the actual cost of the transferred capital asset to, the amalgamated company shall be taken to be the same as it would have been if the amalgamating company had continued to hold the capital asset for the purposes of its own business;"; (ii) in clause (6), after Explanation 2, the following Explanation shall be inserted, namely:— "Explanation 2A.-Where, in a scheme of amalgamation, any capital asset is transferred by the amalgamating company to the amalgamated company and the amalgamated company is an Indian company, the written down value of the transferred capital asset to the amalgamated company shall be taken to be the same as it would have been if the amalgamating company had continued to hold the capital asset for the purposes of its business.". [Finance (No. 2) Act, 1967] © Copyright. Taxmann Publications Pvt. Ltd.

---
Published by eCourtsIndia together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957.