Defination of Amalgamation in Income Tax Act 2025

“amal­ga­ma­tion”, in rela­tion to com­pa­nies, means the merg­er of
one or more com­pa­nies with anoth­er com­pa­ny or the merg­er of two or more
com­pa­nies to form one com­pa­ny (the com­pa­ny or com­pa­nies which so
merge being referred to as the amal­ga­mat­ing com­pa­ny or com­pa­nies and
the com­pa­ny with which they merge or which is formed as a result
of such merg­er being referred to as the amal­ga­mat­ed com­pa­ny) in such a
man­ner that—
(a) all the prop­er­ty of the amal­ga­mat­ing com­pa­ny or companies
imme­di­ate­ly before the amal­ga­ma­tion become the prop­er­ty of the
amal­ga­mat­ed com­pa­ny by virtue of the amalgamation;
(b) all the lia­bil­i­ties of the amal­ga­mat­ing com­pa­ny or companies
imme­di­ate­ly before the amal­ga­ma­tion become the lia­bil­i­ties of the
amal­ga­mat­ed com­pa­ny by virtue of the amalgamation;
© the share­hold­ers hold­ing not less than three-fourths in val­ue of
the shares in the amal­ga­mat­ing com­pa­ny or com­pa­nies (oth­er than shares
already held there­in imme­di­ate­ly before the amal­ga­ma­tion by, or by a
nom­i­nee for, the amal­ga­mat­ed com­pa­ny or its sub­sidiary) become
share­hold­ers of the amal­ga­mat­ed com­pa­ny by virtue of the
amalgamation,
oth­er­wise than as a result of the acqui­si­tion of the prop­er­ty of one com­pa­ny by
anoth­er com­pa­ny pur­suant to the pur­chase of such prop­er­ty by the oth­er company
or as a result of the dis­tri­b­u­tion of such prop­er­ty to the oth­er com­pa­ny after the
wind­ing up of the first-men­tioned company;