65 STAT.]
PUBLIC LAW 183—OCT. 20, 1951
559
" (c) LIMITATIONS.—This part shall apply only if each of the following conditions is satisfied: "(1) The selling corporation (A) did not, after the part l y transaction (or the last transaction described in subsection (a) Ante, p. 558. (1)(B)), continue any business activities other than those incident to its complete liquidation, and (B) within a reasonable time after ceasing business activities, completely liquidated in a transaction other than a transaction described in section 461(a), and ^u^s C^M6I OO ceased existence. "(2) During so much of the base period of the purchasing corporation and of the period thereafter as preceded the part IV transaction, the properties acquired in the part IV transaction were substantially all of the properties (other than cash) which were used, or which in the ordinary course of business replaced properties used, by the selling corporation (or by a component corporation, as defined in section 461(b), of such selling corporation) in the production of the excess profits net income (or deficit therein) which under subsection (b) increases or decreases the excess profits net income of the purchasing corporation. For the purpose of this paragraph, if a business in the hands of both the selling corporation and the purchasing corporation was operated under a substantially identical franchise or license, granted by the same person, such franchise or license shall be deemed acquired by the purchasing corporation from the selling corporation. "(3) The business or businesses acquired in the part IV transaction (including the properties so acquired or properties in replacement thereof) were operated by the purchasing corporation from the date of such transaction to the end of the taxable year or were transferred during the taxable year by the purchasing corporation in a part II transaction to which the provisions of ^^^^gJf^j ^gj ^ ^ section 462(b)(4) are applicable. m. "(d)
SPECIAL RULES. -
^"P-^^-
"(1) For the purpose of subsection (a)(1), the properties of a selling corporation shall be considered to have been acquired by a purchasing corporation only if acquired from— " (A) such selling corporation, or " (B) persons who received the properties upon the liquidation of such selling corporation and who forthwith transferred such properties to the purchasing corporation in a transaction other than a transaction described in section 461 (a). "(2) The computations required by this part in the case of a selling corporation which is a partnership or a business owned by a sole proprietorship shall be made, under regulations prescribed by the Secretary, as if such partnership or such business owned by a sole proprietorship had been a corporation. "(3) I n no case shall more than 100 per centum of the excess pronts net income (or deficit therein) for any month of a selling corporation be allocated to the purchasing corporation or, in the case of transactions described in subsection (a)(1)(B), to the several persons (or to any one or more of such persons) receiving the properties of such selling corporation in such transactions. "(e)
SUCCESSIVE T R A N S ACTION S. — " (1) P A R T IV TRANSACTION FOLLOWING PART IV TRANSACTION.—
I n the case of a selling corporation which was a purchasing corporation in a previous part IV transaction, or which acquired properties of a purchasing corporation in a transaction to which section 462(b)(4) is applicable, the computations under this part 76100 O - 52 (PT. I) - 38
Post, p. 56i.
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