Posted by: Pdfprep
Post Date: January 21, 2021
If any expenditure is incurred by an Indian company wholly and exclusively for the purpose of amalgamation or demerger, the said expenditure is
A . Not allowable as a deduction in computing profits and gains of business or profession
B . Allowed as a deduction spread over five successive previous year beginning with the previous year in which the amalgamation or demerger takes place
C . Not deductible but is eligible to be treated as an intangible asset in respect of which depreciation can be claimed
D . Fully deductible as revenue expenditure in the year in which it is incurred.
Answer: B