Section 13 - Amendment of Section 35 - Finance (No. 2) Act, 1967

13. Amendment of Section 35 In section 35 of the Income-tax Act, after sub-section (4), the following sub-section shall be inserted, namely :- (5) Where, in a scheme of amalgamation, the amalgamating company sells or otherwise transfers to the amalgamated company (being an Indian company) any asset representing expenditure of a capital nature on scientific research, - (i) the amalgamating company shall not be allowed the deduction under clause (ii) or clause (iii) of sub-section (2); and (ii) the provisions of this section shall, as far as may be, apply to the amalgamated company as they would have applied to the amalgamating company if the latter had not so sold or otherwise transferred the asset. .