Guidance on Asset and Liability Transfer from Partnership Firm to Listed Company

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:

  1. Cumulative Loss of Rs. 2 Crore (needs to be transferred)
  2. Creditors and Debtors
  3. Machinery
  4. 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