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.