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

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....ial 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 servic....

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.... the amount of such expenditure remaining unallowed, shall be chargeable to income-tax as profits and gains of the business in the tax year in which the licence or spectrum has been transferred; (c) is transferred under clause (b) in a tax year in which the business is no longer in existence, the provisions of said clause shall apply as if the business is in existence in that tax year; (d) is transferred, whether in whole or in part, and 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 or spectrum is tr....

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.... tax year; (b) under any other provision of this Act in respect of the expenditure mentioned in sub-section (1) (Table: Sl. No. 1 or 2). (5) In case any deduction has been claimed and granted in respect of an expenditure referred to in sub-section (1) (Table: Sl. No. 3) in a tax year and subsequently there is 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, app....