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TMI BlogAmortisation of certain preliminary expensesX X X X Extracts X X X X X X X X Extracts X X X X ..... an amount equal to one-tenth of such expenditure for each of the ten successive previous years beginning with the previous year in which the business commences or, as the case may be, the previous year in which the extension of the 7 [undertaking] is completed or the new 13 [unit] commences production or operation : 2 [Provided that where an assessee incurs after the 31st day of March, 1998, any expenditure specified in sub-section (2), the provisions of this sub-section shall have effect as if for the words an amount equal to one-tenth of such expenditure for each of the ten successive previous years , the words an amount equal to one-fifth of such expenditure for each of the five successive previous years had been substitut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e eligible for any allowance or deduction under any other provision of this Act) as may be prescribed. (3) Where the aggregate amount of the expenditure referred to in sub-section (2) exceeds an amount calculated at two and one-half per cent- ( a ) of the cost of the project, or ( b ) where the assessee is an Indian company, at the option of the company, of the capital employed in the business of the company, the excess shall be ignored for the purpose of computing the deduction allowable under sub-section (1) : 3 [Provided that where the aggregate amount of expenditure referred to in sub-section (2) is incurred after the 31st day of March, 1998, the provisions of this sub-section shall have effect as if for the words two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany commences; ( ii ) in a case referred to in clause ( ii ) of sub-section (1), the aggregate of the issued share capital, debentures and long-term borrowings as on the last day of the previous year in which the extension of the 10 [undertaking] is completed or, as the case may be, the new 16 [unit] commences production or operation, in so far as such capital, debentures and long-term borrowings have been issued or obtained in connection with the extension of the 11 [undertaking] or the setting up of the new 17 [unit] of the company; ( c ) long-term borrowings means- ( i ) any moneys borrowed by the company from Government or the Industrial Finance Corporation of India or the Industrial Credit and Investment Cor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o deduction shall be admissible under sub-section (1) in the case of the amalgamating company for the previous year in which the amalgamation takes place; 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 amalgamation had not taken place. 5 [ (5A) Where the undertaking of an Indian company which is entitled to the deduction under sub-section (1) is transferred, before the expiry of the period specified in sub-section (1), to another company in a scheme of demerger,- ( i ) no deduction shall be admissible under sub-section (1) in the case of the demerged company for the previous year in which the demerger takes place; an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 008, w.e.f. 1-4-2008. 11. Substituted for industrial undertaking by the Finance Act, 2008, w.e.f. 1-4-2008. 12. Substituted for industrial unit by the Finance Act, 2008, w.e.f. 1-4-2008. 13. Substituted for industrial unit by the Finance Act, 2008, w.e.f. 1-4-2008. 14. Substituted for industrial unit by the Finance Act, 2008, w.e.f. 1-4-2008. 15. Substituted for industrial unit by the Finance Act, 2008, w.e.f. 1-4-2008. 16. Substituted for industrial unit by the Finance Act, 2008, w.e.f. 1-4-2008. 17. Substituted for industrial unit by the Finance Act, 2008, w.e.f. 1-4-2008. 18. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-04-2020 before it was read as and the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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