Section 52: Amortisation of expenditure for telecommunications services, amalgamation, demerger, scheme of voluntary retirement, etc

Section 52: Amortisation of expenditure for telecommunications services, amalgamation, demerger, scheme of voluntary retirement, etc · Complied AI

(2)

Where the rights referred to in sub-section (1) (Table: Sl. No. 3 or 4) are transferred and— (a) where the proceeds of the transfer (so far as they consist of capital sums) are less than the expenditure though incurred, but remaining unallowed, a deduction equal to such expenditure remaining unallowed, as reduced by the proceeds of the transfer, shall be allowed in respect of the tax year in which the licence is transferred;

(b)

where the whole or part of the right is transferred, the proceeds of the transfer (so far as they consist of capital sums) exceed the amount of the expenditure though incurred, but remaining unallowed, so much of the excess as does not exceed the difference between the expenditure incurred to obtain the licence and 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 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 any subsequent tax year or years;

(e)

such transfer is in a scheme of amalgamation or demerger to the amalgamated company or resulting company, being an Indian company,— (i) the provisions of clauses (a), (b), (c) and (d) shall not apply to the amalgamating or demerged company; and (ii) all the provisions of this section shall continue to apply to the amalgamated or resulting company as it would have applied to the amalgamating or demerged company, as if the transfer has not taken place.