Definition of ‘Resulting Company’ under Income Tax

As per S.2(41A) of Income Tax Act, 1961, unless the context otherwise requires, the term “resulting company” means one or more companies (including a wholly owned subsidiary thereof) to which the undertaking of the demerged company is transferred in a demerger and, the resulting company in consideration of such transfer of undertaking, issues shares to the shareholders of the demerged company and includes any authority or body or local authority or public sector company or a company established, constituted or formed as a result of demerger.