India - Income Tax Act 2010 - Saarc

1.233 CH. IV - COMPUTATION OF BUSINESS INCOME S. 35Esection shall, as far as may be, apply to the resulting company, as they would haveapplied to the demerged company, if the demerger had not taken place.(4) Where there has been reorganisation of business, whereby a firm is succeededby a company fulfilling the conditions laid down in clause (xiii) of section 47 ora proprietary concern is succeeded by a company fulfilling the conditions laiddown in clause (xiv) of section 47, the provisions of this section shall, as far as maybe, apply to the successor company, as they would have applied to the firm or theproprietary concern, if reorganisation of business had not taken place.The following sub-section (4A) shall be inserted after sub-section (4) of section35DDA by the Finance Act, 2010, w.e.f. 1-4-2011 :(4A) Where there has been reorganisation of business, whereby a private companyor unlisted public company is succeeded by a limited liability partnershipfulfilling the conditions laid down in the proviso to clause (xiiib) of section 47, theprovisions of this section shall, as far as may be, apply to the successor limitedliability partnership, as they would have applied to the said company, ifreorganisation of business had not taken place.(5) No deduction shall be allowed in respect of the expenditure mentioned in subsection(1) in the case of the amalgamating company referred to in sub-section(2), in the case of demerged company referred to in 82a [sub-section (3) and in thecase of a firm or proprietary concern referred to in sub-section (4)] of this section,for the previous year in which amalgamation, demerger or succession, as thecase may be, takes place.(6) No deduction shall be allowed in respect of the expenditure mentioned in subsection(1) under any other provision of this Act.]]83[Deduction for expenditure on prospecting, etc., for certain minerals.35E. (1) Where an assessee, being an Indian company or a person (other than acompany) who is resident in India, is engaged in any operations relating toprospecting for, or extraction or production of, any mineral and incurs, after the31st day of March, 1970, any expenditure specified in sub-section (2), theassessee shall, in accordance with and subject to the provisions of this section, beallowed for each one of the relevant previous years a deduction of an amountequal to one-tenth of the amount of such expenditure.(2) The expenditure referred to in sub-section (1) is that incurred by the assesseeafter the date specified in that sub-section at any time during the year ofcommercial production and any one or more of the four years immediatelypreceding that year, wholly and exclusively on any operations relating toprospecting for any mineral or group of associated minerals specified in Part Aor Part B, respectively, of the Seventh Schedule or on the development of a mineor other natural deposit of any such mineral or group of associated minerals :Provided that there shall be excluded from such expenditure any portion thereofwhich is met directly or indirectly by any other person or authority and anysale, salvage, compensation or insurance moneys realised by the assessee inrespect of any property or rights brought into existence as a result of theexpenditure.82a. Words “sub-section (3), in the case of a firm or proprietary concern referred to in subsection(4) and in the case of a company referred to in sub-section (4A)” shall be substitutedfor “sub-section (3) and in the case of a firm or proprietary concern referred to in subsection(4)” by the Finance Act, 2010, w.e.f. 1-4-2011.83. Inserted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.