(2)Where any block of asset is transferred by—(a)a holding company to its subsidiary company and the conditions of section 70(1)(c) are satisfied;(b)a subsidiary company to its holding company and the conditions of section 70(1)(d) are satisfied; or(c)amalgamating company to the amalgamated company being an Indian company,then the actual cost of the block of assets, irrespective of anything contained in section 39, in the hands of transferee company or amalgamated company, as the case may be, shall be the same as written down value of the block of assets as in the case of the transferor company or the amalgamating company in the immediately preceding tax year as reduced by depreciation actually allowed in respect of that block of asset in relation to that tax year.
