merger expenses

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HARSH (Querist)
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10 May 2010 if my company has taken service of a tax consultant at the time of merger(i.e in 2008-09) and he raises the bill of Rs. 50000/- in current year(i.e 2009-10). if the company pays the expenses whether it will be allowed or not

Aditya Maheshwari

Aditya Maheshwari (Expert)
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10 May 2010 expenditure allowable in 5 instalments u/s 35DD

33[Amortisation of expenditure in case of amalgamation or demerger.

35DD. (1) Where an assessee, being an Indian company, incurs any expenditure, on or after the 1st day of April, 1999, wholly and exclusively for the purposes of amalgamation or demerger of an undertaking, the assessee shall be allowed a deduction of an amount equal to one-fifth of such expenditure for each of the five successive previous years beginning with the previous year in which the amalgamation or demerger takes place.

(2) No deduction shall be allowed in respect of the expenditure mentioned in sub-section (1) under any other provision of this Act.]

HARSH

HARSH (Querist)
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11 May 2010 if the service taken by the tax consultant raises bill in the name of the merged company Can this expenditure be claimed by the resultant company

Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 May 2010 yes it can be claimed as in the end there is only one company and all the expenses have been merged into the resultant company.

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