Demerger asset cost adjusted to demerged company's book figures, with written down value and depreciation limits applied. Where a demerged company transfers a capital asset to a resulting Indian company, the resulting company's actual cost equals what it would have been if the demerged company had continued to hold the asset, capped by the demerged company's written down value; assets brought into India by a non-resident have actual cost reduced by depreciation that would have been allowable if used in India since acquisition; slump-sale treatment and inserted explanations adjust block written down values on demerger by transferring book values and limiting excesses.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Demerger asset cost adjusted to demerged company's book figures, with written down value and depreciation limits applied.
Where a demerged company transfers a capital asset to a resulting Indian company, the resulting company's actual cost equals what it would have been if the demerged company had continued to hold the asset, capped by the demerged company's written down value; assets brought into India by a non-resident have actual cost reduced by depreciation that would have been allowable if used in India since acquisition; slump-sale treatment and inserted explanations adjust block written down values on demerger by transferring book values and limiting excesses.
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