Section 60 — Conditions for carrying forward or set-off of accumulated loss and unabsorbed depreciation allowance in case of amalgamation

(1) The conditions referred to in section 116(4)(b)(iii) shall be the following:—
(a) the amalgamated company, owning an industrial undertaking of the amalgamating company by way of amalgamation, shall—(i) achieve the level of production of at least 50% of the installed capacity of the said undertaking before the end of four years from the date ofamalgamation; and(ii) continue to maintain the said minimum level of production till the end of five years from the date of amalgamation; and(b) the amalgamated company shall furnish to the Assessing Officer a certificate in Form No. 29, duly verified by an accountant as defined in section515(3)(b), with reference to the books of account and other documents showing particulars of production, along with the return of income for therelevant tax year during which the prescribed level of production is achieved and for subsequent relevant tax years falling within five years from thedate of amalgamation.(2) For the purposes of sub-rule (1)(a), the Central Government, on an application made by the amalgamated company, may relax the condition of achievingthe level of production or the period during which the same is to be achieved, or both, in suitable cases having regard to the genuine efforts made by theamalgamated company to attain the prescribed level of production and the circumstances preventing such efforts from achieving the same.
(3) For the purposes of this rule, "installed capacity" means the capacity of production existing on the date of amalgamation.