Section 35D applies to expenses incurred wholly & exclusively for amalgamation or demerger of an undertaking

Menarini india P.Ltd. Vs DCIT (ITAT Ahmedabad) In the assessment proceedings, it was noticed by the AO that the assessee has claimed expenses of Rs.1,96,630/- and Rs.3,37,080/- against Tax Consultancy with Transaction Tax as “preparation of Amalgamation of MRPL with MIP” and “Lawyer fees for Merger” respectively as revenue expenses. The ld.AO sought details of such expenses and explanation as to why the same should not be considered under section 35D of the Act and 4/5th of the such expenditure be not disallowed. It was explained by the assessee that the said expenditure was incurred d...