(7)Where a firm is succeeded to by a company in the business carried on by it as a result of which the firm sells or otherwise transfers to the company any ship, aircraft, machinery or plant, the provisions of clauses (a) and (b) of sub-section (6) shall, so far as may be, apply to the firm and the company.Explanation. - The provisions of this sub-section shall apply only where-(i)all the property of the firm relating to the business immediately before the succession becomes the property of the company;(ii)all the liabilities of the firm relating to the business immediately before the succession become the liabilities of the company; and(iii)all the shareholders of the company were partners of the firm immediately before the succession.
