Tribunal held that under section\u00a035DD\u00a0, the deduction was allowable to the assessee for expenditure incurred wholly and exclusively for demerger of an undertaking. Since demerger of the undertaking took place from the parent company, the word \u201cassessee\u201d referred to the parent company and not the assessee, with whom the undertakings of the parent company got merged. In case of demerger, where the undertaking get demerged, this might result in a new entity and in those circumstances, the resultant company could not incur expenditure before its birth. It was the parent entity, which initiated the demerger of the undertaking and incurred expenditure for legal and professional expenses in relation to such demerger. The resultant company having come into existence only as a result of the demerger, the word \u201cassessee\u201d in section\u00a035DD\u00a0of the Act could not include the resultant company. Therefore, the assessee was not entitled to deduction under section\u00a035DD\u00a0of the Act. ( AY.2007-08, 2008-09)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 35DD : Amortisation of expenditure \u2013 Amalgamation \u2013 Demerger –
\n Expenses allowable in hands of parent company and not resultant company [ S.37(1) ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-13920","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3Cw","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=13920"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13920\/revisions"}],"predecessor-version":[{"id":13921,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13920\/revisions\/13921"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=13920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=13920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=13920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}