Audit Assistant
195 Points
Joined May 2013
Section 35D of the Act provides that where an assessee, being an Indian company or a person (other than a company) who is resident in India, incurs, after the 31 March 1970, any expenditure specified in sub-section (2) thereunder, before the commencement of his business, or after the commencement of his business, in connection with the extension of his ‘industrial undertaking’ (Removed 'industrial' in year 2010) or in connection with his setting up a new unit, 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 business commences or the extension is completed or the new unit commenced production.
From the above defination, Even the expenditure incurred in the subsequent years for extension or in connection with extension of undertaking or in connection with any new setup will be allowed from the date of extension is completed or the new unit commenced production.