Resultant Company cannot claim Demerger Expenses U/s. 35DD

ACIT Vs. NIIT Technologies Ltd. (ITAT Delhi) The issue under consideration is whether the deduction u/s 35DD for demerger expenses is allowed to be claimed by resultant demerged company? In the present case, the M/s. NIIT Ltd. was demerged pursuant to a scheme of demerger approved by the Hon’ble High Court of Delhi with effect from 01/04/2003. It was claimed that the assessee had incurred expenditure on legal and professional expense in assessment year 2004-05 for pursuing the aforesaid scheme of demerger of ‘NIIT Ltd.’ and claimed deduction of 1/5th of the aforesaid expenditure, for fir...