https://www.taxtmi.com/caselaws?id=120459 The Tribunal dismissed the revenue's appeal, affirming the CIT(A)'s decision that unabsorbed capital expenditure on scientific research of the demerged company should be treated as unabsorbed depreciation under section 32(2) and thus eligible for carry forward under section 72A(4) of the Income-tax Act. The Tribunal held that section 35(4) allows the treatment of such expenditures similarly to depreciation, supporting the assessee's position that demergers should be tax neutral. Consequently, the unabsorbed capital expenditure on scientific research is eligible for carry forward as unabsorbed depreciation. en-us Mon, 28 Jul 2008 00:00:00 +0530 Sat, 18 Jan 2025 13:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=120459 The Tribunal dismissed the revenue's appeal, affirming the CIT(A)'s decision that unabsorbed capital expenditure on scientific research of the demerged company should be treated as unabsorbed depreciation under section 32(2) and thus eligible for carry forward under section 72A(4) of the Income-tax Act. The Tribunal held that section 35(4) allows the treatment of such expenditures similarly to depreciation, supporting the assessee's position that demergers should be tax neutral. Consequently, the unabsorbed capital expenditure on scientific research is eligible for carry forward as unabsorbed depreciation. Case-Laws Income Tax Mon, 28 Jul 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=120459