Amortisation of certain preliminary expenses.

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nces, for clause (a); or (ii) the tax year in which the extension of the undertaking is completed or the new unit commences production or operation, for clause (b). (2) The expenditure referred to in sub-section (1) shall be- (a) the expenditure in connection with- (i) preparation of feasibility report; (ii) preparation of project report; (iii) conducting market survey or any other survey necessary for the business; (iv) engineering services relating to the business; (b) legal charges for drafting any agreement between the assessee and any other person for any purpose relating to the setting up or conduct of the business; (c) if the assessee is a company,- (i) legal charges for drafting and printing of the Memorandum and .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s completed, or the new unit commences production or operations, which only includes fixed assets acquired or developed in connection with the extension of the undertaking or setting up of new unit; (b) "capital employed in the business of the company" means- (i) in cases under sub-section (1)(a), the aggregate of the issued share capital, debentures and long-term borrowings as on the last day of the tax year in which the business of the company commences; (ii) in a case under sub-section (1)(b), the aggregate of the issued share capital, debentures and long-term borrowings as on the last day of the tax year in which the extension of the undertaking is completed or, as the case may be, the new unit commences production or operation, i .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... an company, then- (a) no deduction under sub-section (1) shall be allowed to the amalgamating company for the tax year in which amalgamation takes place; and (b) all provisions of this section shall continue to apply to the amalgamated company as they would have applied to the amalgamating company, as if the amalgamation has not taken place. (8) If an undertaking of Indian company entitled for deduction under sub-section (1) is transferred before five years specified in the said sub-section, in a scheme of demerger to another company, then- (a) no deduction under sub-section (1) shall be allowed to the demerged company for the tax year in which demerger takes place; and (b) all provisions of this section shall continue to apply to .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X