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| The Tax Publishers2020 TaxPub(DT) 2496 (Kol-Trib) INCOME TAX ACT, 1961
Section 35DD
Amortization under section 35DD is continuing one and when deduction was allowed in the initial year of claim, then in absence of change in factual matrix, Revenue could not disturb the continuing claim in subsequent years.
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Business deduction under section 35DD - Amortization of de-merger expenses - No change in factual matrix after allowance in initial year -
AO for the year under consideration disallowed amortization of de-merger expenses claimed by the assessee under section 35DD. Initial year of claim of deduction under section 35DD was assessment year 2010-11 and same stood allowed to assesse. Held: Once claim under section 35DD was accepted in the initial year, i.e., assessment year 2010-11, then clock had started running in favour of assessee which was to continue for the entire period of ten years and benefit once granted in the initial year could not be denied in subsequent years in the absence of change in factual matrix.
Supported by:M/s. Shasun Chemicals and Drugs Ltd. v. CIT (2016) 388 ITR 1 (SC) : 2016 TaxPub(DT) 4252 (SC).
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2012-13 to 2014-15
INCOME TAX ACT, 1961
Section 14A Rule 8D
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