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
rata basis for five years term in terms of section 35DD of the
Act with AY 2010-11 being the first year of claim ... assessment completed u/s 143(3) on
18.12.2013 allowed the deduction so claimed u/s 35DD
2423/Ahd/2018
-2-
of the AO in invoking section 35DD of the Act and thereby disallowing
an amount ... demerger of an undertaking, and therefore section 35D is applicable.
Accordingly, the ld.AO applied provision of section 35DD and allowed
an amount
payment made to M/s. Accenture by applying provisions of
Section 35DD of the Act as against the claim of deduction of the whole
expenditure ... company, the same would fall within the ambit of provisions of
Section 35DD of the Act and accordingly only 1/5th of the said expenditure
thereof has to be allowed as per the
9
provisions of section 35DD of the Act. On this premise learned Assessing
Officer added back ... amalgamation
expenses.
19. On this aspect, Ld. CIT(A) while dealing section 35DD of the Act
gave a finding that unless and until the expenditure
shown in computation and deduction
of 1/5th thereof was claimed U/s. 35DD. The Disallowance of the
expenditure ... total expenditure of Rs. 42,20,172 u/s. 35DD of the
Act with respect to demerger expenses. It was therefore prayed that
appropriate relief
Under the Income-Tax Act , the term Intangible Assets has been
defined u/s 32 (1 )(ii) of the Act. Intangible Assets are know ... provisions related to Amortisation have also been provided u/s
35D , 35DD and section 35DDA of the Act. Perusal of the three
sections reveals that
detail of ESS
and also explain why disallowance should not be made u/s. 35DDA in this
case as the scheme is similar ... convinced
and disallowed a sum of Rs. 94,35,297/- u/s. 35DD. However, he held that
the assessee has allowed to amortize the said
2489/Chny/2019
the purpose of business and allowable under section 37(I) of the
Act.
2.2 The CIT(A) erred in relying ... expenditure and amortisation is
allowed only for certain expenses specified under section 35D
35DD and 35DDA of the Act.
2.7 The CIT(A) failed
