Deduction continuity on amalgamation and demerger preserves transferee companies' right to claim residual tax deductions.

Amendment preserves deduction entitlement under section 35AB where an undertaking is transferred in an amalgamation or demerger, entitling the amalgamated or resulting company to claim the deduction to the same extent and for the residual period as would have been allowable to the transferor company had the amalgamation or demerger not taken place.

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