Power of Central Government to prescribe other conditions under Amalgamation : 

Section 72A(2)(iii) empowers the Central Government to prescribe other conditions to ensu re that the amalgamation is for “genuine business purpose” or for the purpose of revival of the business of amalgamating company.

Rule 9C prescribes that the amalgamated company should achieve the level of production of at least 50% of the installed capacity of the said undertaking before the end of 4 years from the date of amalgamation and maintain the said minimum level till the end of 5 years from the date of amalgamation. The assessee is required to obtain a report in the prescribed form as given in the Rules.

An issue arises that the above condition prescribed vide the above notification cannot be satisfied in case where the installed capacity is not there. Examples could be software companies, units engaged in assembly/processing activities etc.