35DDA. Amortisation of expenditure incurred under voluntary
retirement scheme.-(1) Where an assessee incurs any
expenditure in any previous year by way of payment of any
sum to an employee in connection with his voluntary retirement,
in accordance with any scheme or schemes of voluntary retirement,
one-fifth of the amount so paid shall be deducted in computing
the profits and gains of the business for that previous year,
and the balance shall be deducted in equal instalments for
each of the four immediately succeeding previous years.
(2) Where the assessee, being an Indian company, is entitled
to the deduction under sub-section (1) and the undertaking
of such Indian company entitled to the deduction under sub-section
(1) is transferred, before the expiry of the period specified
in that sub-section, to another Indian company in a scheme
of amalgamation, the provisions of this section shall, as
far as may be, apply to the amalgamated company as they would
have applied to the amalgamating company if the amalgamation
had not taken place.
(3) Where the undertaking of an Indian company entitled to
the deduction under sub-section (1) is transferred, before
the expiry of the period specified in that sub-section, to
another company in a scheme of demerger, the provisions of
this section shall, as far as may be, apply to the resulting
company, as they would have applied to the demerged company,
if the demerger had not taken place.
(4) Where there has been reorganisation of business, whereby
a firm is succeeded by a company fulfilling the conditions
laid down in clause (xiii) of section 47 or a proprietary
concern is succeeded by a company fulfilling the conditions
laid down in clause (xiv) of section 47, the provisions of
this section shall, as far as may be, apply to the successor
company, as they would have applied to the firm or the proprietary
concern, if reorganisation of business had not taken place.
(4A) Where there has been reorganisation of business, whereby
a private company or unlisted public company is succeeded
by a limited liability partnership fulfilling the conditions
laid down in the proviso to clause (xiiib) of section 47,
the provisions of this section shall, as far as may be, apply
to the successor limited liability partnership, as they would
have applied to the said company, if reorganisation of business
had not taken place.
(5) No deduction shall be allowed in respect of the expenditure
mentioned in sub-section (1) in the case of the amalgamating
company referred to in sub-section (2), in the case of demerged
company referred to in sub-section (3), in the case of a firm
or proprietary concern referred to in sub-section (4) and
in the case of a company referred to in sub-section (4A) of
this section, for the previous year in which amalgamation,
demerger or succession, as the case may be, takes place.
(6) No deduction shall be allowed in respect of the expenditure
mentioned in sub-section (1) under any other provision of
this Act.
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