Section 20 in Finance Act, 1999
20. Insertion of new section 35DD.
- After section 35D of the Income-tax Act, the following section shall ... inserted with effect from the 1st day of April, 2000, namely:- "35DD. Amortisation of expenditure in case of amalgamation or demerger. - (1) Where an assessee
Section 35DD in The Income Tax Act, 1961
35DD. Amortisation of expenditure in case of amalgamation or demerger.
[Inserted by Act 27 of 1999 , Section
business reorganization has taken place
(4) The provisions of section 35D, section 35DD or section 35DDA shall, in a case where an undertaking
lakhs claimed under
section 35D and allowed under section 35DD of the Act
and further the disallowance of Rs.3.76 crores claimed
under section ... 35DD and further deletion of disallowance of
Rs.57.33 lakhs on account of foreign exchange fluctuation.
Subsequently, notice under section
Assessing Officer in respect of demerger
expense under section 35DD of the Act on the alleged ground that
claim of deduction for demerger expenses under ... section 35DD of the
Act is accepted by the Assessing Officer without verification.
The Appellant submits that, in the facts and in the circumstances
being amortization of de-merger expenses
claimed by the assessee u/s. 35DD of the Income-tax Act, 1961 (hereinafter referred ... rata basis for five years term in terms of section 35DD of the
Act with AY 2010-11 being the first year of claim
revenue: - .................................................................. 10
Analysis and reasons: - ............................................................................................................ 10
Deduction claimed under Section 35DD: - .......................................................................... 11
Disallowance under Section 14A of the Act: - ..................................................................... 16
Commuted/discounted one-time lease ... upholding the disallowance of Rs.44,00,739/- claimed under section 35DD of
the Act, being l/5th of expenses incurred in [the] assessment year
upholding disallowance of Rs. 44,00,739/-, claimed
under section 35DD of the Income Tax Act, 1961 ("the Act") in
respect ... facts and
in law in holding that in terms of section 35DD of the Act,
demerger expenses are allowable only in the hands
revenue relates to the disallowance of deduction claimed u/s. 35DD
of the Act in respect of travelling expenses of Rs.15,29,581/-. Briefly ... which 1/5th was claimed as deduction u/s.
35DD of the Act. The AO required the assessee to explain as to why the said
allowed the
exdpenditure contrary to the specific provisions provided u/s 35DD which
resulted in under assessment of income to the tune ... view of the specific provisions
provided u/s 35DD of the Act, any expenditure incurred for amalgamation or
demerger of an undertaking, the assessee shall
