Amalgamation & Demerger

Dear Sir,

i have one doubt , please reply as soon as possible .

In the year of Amalgamation/Demerger , which co. will claim the deduction of amortisation expenses like, w/off patent rights exp, preliminary exp, scinetifice research exp.etc

Where an undertaking which is entitled to deduction u/s 35D, 35DD. 35DDA is transferred in the scheme of Amalgamation or Demerger, these expenses would be available to the amalgamated company in the same manner as it would have been available to the amalgamating company.

As far the year of amalgamation these expenses wold be available in the proportion of the number of days of the ownership of the business.

dear sir,

in the year of amalgamation, whose co. claim the deduction which co. is actually pay the expenses.

In case of Exp. on amalgamation, the company who has incurred such exp. is entitled to claim deduction.

However, if an amalgamating co. incurred such expenses then deduction is availaible to it only in the year of amalgamation and not further.

Therefore it is advisable that amalgamated co. incurr the amalgamation expenses.

In case of other expenses, amalgamating co. will claim deduction in the year of amalgamation & further amalgamated co.

Dear sir

what should be done in the following case?

An individual,who is at present,doing business as a sole proprietorship firm wants to do the same in the existing private limited company. 

Hello Sir

This is regarding demerger of the company . The company has gone into demerger . And the resulting company got Land on demerger scheme. Resulting co has to incurr expenses to get the land tfd in its name . wat wil be the treatment of such expenditure ? can it be treated as demerger expnses under section 35 D or will get capitalised to  the cost of land ? or It will be treated as revenue expenditure ?

Thanks and Regards

Jagdeep Kaur