Amortisation of expenditure for telecommunications services, amalgamation, demerger, scheme of voluntary retirement, etc.

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.... tax year Number of tax years over which deduction of expenditure is allowable in equal instalments A B C D 1. Expenditure incurred by an Indian company, wholly and exclusively for the purposes of amalgamation or demerger of an undertaking. Tax year in which such amalgamation or demerger takes place. Five tax years. 2. Amount paid to an employee in connection with his voluntary retirement as per any scheme of voluntary retirement. Tax year in which such payment is made. Five tax years. 3. Capital expenditure incurred and actually paid for acquiring any right to use spectrum for telecommunication services (spectrum fee). Tax year in which,- (a) the business to operate telecom services ....

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....e remaining unallowed, shall be chargeable to income-tax as profits and gains of the business in the tax year in which the licence has been transferred; (c) where the rights under clause (b) is transferred in a tax year in which the business is no longer in existence, the provisions of this sub-section shall apply as if the business is in existence in that tax year; (d) where the whole or part of the right is transferred, the proceeds of the transfer (so far as they consist of capital sums) are equal or greater than the amount of expenditure incurred remaining unallowed, no deduction for such expenditure shall be allowed under sub-section (1) in respect of the tax year in which the licence is transferred or in respect of a....

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....ted in respect of an expenditure referred in sub-section (1) (Table: Sl. No. 3) and there is subsequent failure on part of the assessee to comply with any of the provisions of this section, then,- (a) the deduction shall be deemed to have been wrongly allowed; (b) the Assessing Officer may, irrespective of any other provisions of this Act, recompute the total income of the assessee for the said tax year by making necessary rectification; (c) the provisions of section 287 shall, so far as may be, apply; and (d) the period of four years specified in section 287(8) shall be counted from the end of the tax year in which such failure takes place. (6) Where a specified business reorganisation takes place bef....