Demerger transfer under section 35E: demerged company loses deduction; resulting company inherits the statutory tax treatment. Where an undertaking entitled to the deduction under sub-section (1) is transferred in a scheme of demerger before the expiry of the eligibility period, no deduction is admissible to the demerged company for the previous year in which the demerger occurs, and the provisions of the section shall, as far as may be, apply to the resulting company as they would have applied to the demerged company if the demerger had not taken place.
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Provisions expressly mentioned in the judgment/order text.
Demerger transfer under section 35E: demerged company loses deduction; resulting company inherits the statutory tax treatment.
Where an undertaking entitled to the deduction under sub-section (1) is transferred in a scheme of demerger before the expiry of the eligibility period, no deduction is admissible to the demerged company for the previous year in which the demerger occurs, and the provisions of the section shall, as far as may be, apply to the resulting company as they would have applied to the demerged company if the demerger had not taken place.
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