Dear All,
I hope you’re well.
We are a listed company intending to purchase all assets (except the building) and liabilities of a partnership firm, which is owned by the same director (related party). Below are the key items currently reflected in the partnership firm:
- Cumulative Loss of Rs. 2 Crore (needs to be transferred)
- Creditors and Debtors
- Machinery
- Building (no transfer required)
Could anyone please guide us on how to execute this transaction? Additionally, how would the income tax treatment work for the Rs. 2 Crore loss when it is transferred to the listed company?
Please note that the partnership firm will continue its operations post-sale.
Looking forward to your insights.
Regards,
Hasmukh
8850275751