Amortisation of preliminary expenses: spreads qualifying start up and prospecting costs across successive years under capped deduction rules. Section 35D allows amortisation of specified preliminary expenses for resident assessees setting up or extending industrial undertakings by permitting a deduction equal to one-tenth of qualifying expenditure for each of ten successive previous years, subject to exclusions, a cap based on project cost or capital employed, audit requirements for non-company claimants, disqualification where expenditure is otherwise deducted, and special rules on amalgamation. Section 35E grants a similar ten-year spread for qualifying prospecting and mine-development expenditure, limits qualifying years, excludes capital acquisitions and depreciable assets, permits carry-forward of unallowed instalments up to the tenth year, requires audit certification for non-company claimants, and contains analogous amalgamation and overlap restrictions.
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.
Amortisation of preliminary expenses: spreads qualifying start up and prospecting costs across successive years under capped deduction rules.
Section 35D allows amortisation of specified preliminary expenses for resident assessees setting up or extending industrial undertakings by permitting a deduction equal to one-tenth of qualifying expenditure for each of ten successive previous years, subject to exclusions, a cap based on project cost or capital employed, audit requirements for non-company claimants, disqualification where expenditure is otherwise deducted, and special rules on amalgamation. Section 35E grants a similar ten-year spread for qualifying prospecting and mine-development expenditure, limits qualifying years, excludes capital acquisitions and depreciable assets, permits carry-forward of unallowed instalments up to the tenth year, requires audit certification for non-company claimants, and contains analogous amalgamation and overlap restrictions.
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