Amortisation of certain preliminary expenses.

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....i) the tax year in which the business commences, for clause (a); or (ii) the tax year in which the extension of the undertaking is completed or the new unit commences production or operation, for clause (b). (2) The expenditure referred to in sub-section (1) shall be- (a) the expenditure in connection with- (i) preparation of feasibility report; (ii) preparation of project report; (iii) conducting market survey or any other survey necessary for the business; (iv) engineering services relating to the business; (b) legal charges for drafting any agreement between the assessee and any other person for any purpose relating to the setting up or conduct of the business; (c....

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....land and buildings) and- (i) for cases under sub-section (1)(a), the actual cost as shown in the books of the assessee as on the last day of the tax year in which the business commences; (ii) for cases under sub-section (1)(b), the actual cost as shown in the books of the assessee as on the last day of the tax year in which either the extension of the undertaking is completed, or the new unit commences production or operations, as the case may be, in so far as such fixed assets have been acquired or developed in connection with the extension of the undertaking or setting up of new unit; (b) "capital employed in the business of the company" means- (i) in cases under sub-section (1)(a), the aggregate of the....

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....e the specified date referred to in section 63; and (b) the assessee furnishes for the first year in which the deduction under this section is claimed, the report of such audit by such date in such form duly signed and verified by such accountant and setting forth such particulars, as may be prescribed. (7) If an undertaking of Indian company entitled for deduction under sub-section (1) is transferred before expiry of five years specified in the said sub-section, in a scheme of amalgamation, to another Indian company, then- (a) no deduction under sub-section (1) shall be allowed to the amalgamating company for the tax year in which amalgamation takes place; and (b) all provisions of this section shall continue ....