14. Demerger -
Any splitting up or reconstruction of any authority or
In exercise of the powers conferred under Explanation 4 to clause
(19AA) of section 2 of the Income-tax Act, 1961 (43 of 1961), the
Central Government hereby specifies that where the split up or the
reconstructed authority or body, constituted or established under a Central,
State or Provincial Act, is an entity engaged in the generation or transmission
or distribution of electrical power, or in all of these activities, such
splitting up or reconstruction shall be deemed to be a demerger if the
following conditions are fulfilled, namely :—
(i) splitting up or reconstruction is effected
through a notification in the Official Gazette by the Central or the State Government;
and
(ii) assets of the split up or reconstructed
authority or body, are transferred to one or more resulting companies on a
going concern basis.
Notification : No. SO 1159(E), dated
26-12-2000.