which the amalgamation or
demerger takes place. As per sub section (2) of section 35DD , no deduction
shall be allowed in respect of the expenditure ... section 35DD , but not under the provisions of
section 43B of the Act. No doubt, section 35DD provides for deduction
towards expenditure incurred wholly
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
Income-tax act. The Finance Act, 1999 has introduced section 35DD
which allows the assessee to amortize fee paid to the Registrar of Companies ... Finance Act, 1999 had introduced a new section viz. section 35DD , which says that
assessee company can claim one-fifth deduction in respect
expenses
4 I.T.A. No.1321/Mds/16
covered under Section 35DD of the Income-tax Act, 1961 (in short
part of section 28 . The income
referred to in section 28 shall be computed in accordance with the
provisions contained in section ... certain
domestic companies. Section 35 deals with expenditure on scientific
research, section 35AB deals with expenditure on know-how and
section 35ABB deals with expenditure
ESIC `10,77,878/-
Disallowance u/s. 35D `10,44,188/-
Disallowance u/s. 35DD `39,512/-
Disallowance @5% of Expenses `40,73,198/-
Depreciation ... ESIC `10,77,878/-
Disallowance u/s. 35D `10,44,188/-
Disallowance u/s. 35DD `39,512/-
Disallowance @5% of Expenses `40,73,198/-
Depreciation
Appeals)
erred in deleting the disallowance of deduction u/s 35DD of the Act. The Ld.
DR vehemently supporting the orders of the Assessing Officer ... expenses for merger and
amalgamation as allowable expenditures u/s 35DD of the Act. The Ld. DR
15
M/s Maanraj Trading
allowed on proportionate basis as
penalty the provision of section 35DD ."
However, assessee also preferred an appeal for AY 2003-04 before ... note
that assessee is very much entitle for restructuring expense u/s. 35DD of the Act.
Accordingly, we direct the AO to allow the restructuring
years under
consideration were completed by the Assessing Officer u/s. 143(3) read with
section 153A of the Act by making various additions ... validity of assessments passed u/s 153A of the Act (Ground No.1)
and the disallowance made u/s 35DD of the Act (Ground
section 44DB , (iv) section
44DB (5) (c) defines 'amalgamation', (v) there is no dispute that the
condition of section 44DB ... section 44DB w.e.f. April 1, 2008 to provide for the formula
for computation of the allowance and deduction u/s 32 , 35D , 35DD
