(1) When two or more companies are to be amalgamated by the order of a Court or of the Central Government and the order is to take effect from a date earlier to the date of the order, and such companies have sold or purchased any goods to or from each other in the period commencing on the date from which the order is to take effect, and ending on the date of the order, then such - 60 - Certain agents liable to pay tax for sales on behalf of principal.
Amalgamation of companies.
transactions of sale or purchase shall be included in the turnover of the sales or of the purchases of the respective companies and will be assessed to tax accordingly.
(2) Notwithstanding anything contained in the said order, for all purposes of this Act, the said two or more companies shall be treated as distinct companies and shall be treated as such for all periods upto the date of the said order and the registration of the said companies under this Act, shall be cancelled with effect from the date of the said order.
(3) The words and expressions used in this section, but not defined, shall have their respective meanings, assigned to them in the Companies Act, 1956 (1 of 1956).