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TMI BlogSpecial provision for deductions in the case of business for prospecting, etc., for mineral oilX X X X Extracts X X X X X X X X Extracts X X X X ..... n lieu of, or in addition to, the allowances admissible under this Act, such allowances as are specified in the agreement in relation- (a) to expenditure by way of infructuous or abortive exploration expen-ses in respect of any area surrendered prior to the beginning of commercial production by the assessee ; (b) after the beginning of commercial production, to expenditure incurred by the assessee, whether before or after such commercial production, in respect of drilling or exploration activities or services or in respect of physical assets used in that connection, except assets on which allowance for depreciation is admissible under section 32 : 3[***] 4[Provided that in relation to any agreement entered into after the 31st day of M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the difference between the expenditure incurred in connection with the business or to obtain interest therein and the amount of such expenditure remaining unallowed, shall be chargeable to income-tax as profits and gains of the business in the previous year in which the business or interest therein, whether wholly or partly, had been transferred : Provided that in a case where the provisions of this clause do not apply, the deduction to be allowed for expenditure incurred remaining unallowed shall be arrived at by substracting the proceeds of transfer (so far as they consist of capital sums) from the expenditure remaining unallowed. Explanation.-Where the business or interest in such business is transferred in a previous year in which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce Act, 1981, w.e.f. 1-4-1981. 5. Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999. 6. Substituted by the Finance Act, 1999, w.e.f. 1-4-2000. Prior to its substitution, proviso, as inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999, read as under : "Provided that in a scheme of amalgamation, the amalgamating company sells or otherwise transfers the business to the amalgamated company (being an Indian company), the provisions of this sub-section- (i) shall not apply in the case of the amalgamating company; and (ii) shall, as far as may be, apply to the amalgamated company as they would have applied to the amalgamating company if the latter had not transferred the business or interest in the business." 7. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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