Section 35DD of the Income Tax Act

Income-tax Act, 2025: s.52

Section 35DD of the Income-tax Act, 1961 corresponds to section 52 (Amortisation of expenditure for telecommunications services, amalgamation, demerger, scheme of voluntary retirement, etc) of the Income-tax Act, 2025.

Read section 52 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 35DD is DP World (P.) Ltd. v. DCIT (140 ITD 694), cited in 17 of the 115 judgments on BharatTax that turn on this section.

Leading authorities on Section 35DD

DP World (P.) Ltd. v. DCIT
140 ITD 694 · 2013 · ITAT
17
citing judgments

A transaction of gift cannot be brought to tax. Corporations can give and accept gifts, and these are considered capital receipts, not taxable under Section 28(iv).

261 ITR 501 (Bom HC)\nb. CIT v. Compaq Electric Ltd.
26 Taxmann.com 333 · 2012 · High Court
15
citing judgments

Section 41(1) cannot be invoked if no deduction was granted to the assessee in earlier years. Section 41(1) applies specifically to remission of trading liabilities, and waiver of a loan is a cessation of liability other than a trading liability.

(CIT v. STADS Ltd.
373 ITR 313 · 2015 · High Court
11
citing judgments

Reserves created under a scheme of amalgamation are capital in nature and do not arise from normal business activity, therefore cannot be taxed as business income. Amounts reflected in 'reserves and surplus' cannot be treated as a benefit or perquisite arising from business.

(i) Bharati Airtel v. Addl.CIT
49 Taxmann.com 146 · 2014 · ITAT
10
citing judgments

A transaction between two enterprises constitutes an 'international transaction' under section 92B only if it has a bearing on profits, incomes, losses, or assets of such enterprises. This includes transactions mentioned in the explanation to section 92B, such as giving guarantees, provided they impact the enterprise's financial results.

Universal Radiators v. CIT
201 ITR 800 · 1993 · Supreme Court
9
citing judgments
SC in Kartikeya Sarabhai v. CIT
94 Taxmann 164 · 1997 · Supreme Court
9
citing judgments
Sundaram Finance Limited v. ACIT
349 ITR 356 · 2012 · High Court
8
citing judgments
Sundaram Finance Limited v. ACIT
165 ITD 563 · 2017 · ITAT
5
citing judgments
Aamby Valley Ltd. v. ACIT
102 Taxmann.com 385 · 2019 · High Court
4
citing judgments
Young Indian v. ACIT Exemptions
137 Taxmann.com 12 · 2022 · Reported
3
citing judgments

Judgments on Section 35DD

Strides Pharma Science Limited, Mumbai vs. Income Tax Officer, 15(3)(2), Mumbai

In the result, the appeal of the assessee is partly allowed

ITA 5721/MUM/2024[2020-21]Status: DisposedITAT Mumbai20 Mar 2025AY 2020-21

Bench: Shri Amit Shukla & Smt. Renu Jauhriआयकर अपील सं./Ita No.5721/Mum/2024 (निर्धारण वर्ष / Assessment Year :2020-21) Strides Pharma Science Limited V/S. Ito 15(3)(2), बनाम Aayakar Bhavan, New 201, Devavrata, Sector-17, Marine Lines, Mumbai-400020 Vashi, Navi Mumbai, Maharashtra-400703 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Blrs03808A .. Appellant/अपीलार्थी Respondent/प्रतिवादी निर्धारिती की ओर से /Assessee By: Shri Nishit Gandhi राजस्व की ओर से /Revenue By: Mr. R. A. Dhyani सुनवाई की तारीख / Date Of Hearing 16.01.2025 20.03.2025 घोषणा की तारीख/Date Of Pronouncement आदेश / Order Per Renu Jauhri [A.M.] :- This Appeal Is Filed By The Assessee Against The Order Of The Learned Commissioner Of Income-Tax (Appeals), Mumbai/National Faceless Appeal Centre, Delhi [Hereinafter Referred To As “Cit(A)”] Dated 06.09.2024 Passed U/S.250 Of The Income-Tax Act, 1961 [Hereinafter Referred To As “Act”] For

For Appellant: Shri Nishit GandhiFor Respondent: Mr. R. A. Dhyani
Section 143(3)Section 144Section 14ASection 250Section 35Section 37(1)

Decore Thermal Power Private Limited, Bhopal vs. Dy Commissioner of Income Tax 1(1), Bhopal

In the resulting company at their respective values as appearing in the books of account of the demerged company at the closure of the business of the day immediate preceding the appointed date i

ITA 421/IND/2024[2017-18]Status: DisposedITAT Indore31 Jan 2025AY 2017-18

Bench: Shri B.M. Biyani & Shri Udayan Das Guptaassessment Year:2017-18 Decore Thermal Power Pvt. Ltd. Dcit 1(1) Office Block 1A, 5Th Floor, Db City Bhopal Corporate बनाम/ Park, Arera Hills Opp Vs. Mp Nagar (Assessee/Appellant) (Revenue/Respondent) Pan: Aafcd3868H Assessee By Shri Navin Gupta & Ms. Shilpa Gupta Ars Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 23.01.2025 Date Of Pronouncement 31.01.2025

Section 143(3)Section 14ASection 250Section 35DSection 391Section 52

Ramboll India Private Limited, New Delhi vs. ACIT, Circle-19(1), Delhi

In the result, the appeal of the assessee is partly allowed

ITA 1468/DEL/2022[2018-19]Status: DisposedITAT Delhi18 Dec 2024AY 2018-19

Bench: Shri M. Balaganesh & Shri Anubhav Sharmaramboll India Pvt. Ltd, Vs. Acit, 30, Mohan Singh Palace, Circle-19(1), Connaught Place, New Delhi Delhi (Appellant) (Respondent) Pan:Aahcp8488M

For Appellant: Shri K. M. Gupta, AdvFor Respondent: Shri Zafarul Haque Tanveer, CIT DR
Section 92C

Gujarat Gas Limited, Ahmedabad vs. The Pr. CIT-3, Ahmedabad

In the result, we are of the considered view that Ld

ITA 969/AHD/2024[2018-19]Status: DisposedITAT Ahmedabad21 Nov 2024AY 2018-19

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT DR
Section 2Section 32(1)(iia)Section 35DSection 80

T V Sundaram Iyengar & Sons Limited, Madurai vs. DCIT, CC - 2, Madurai

Appeal of the assessee stands dismissed

ITA 1803/CHNY/2019[2013-14]Status: DisposedITAT Chennai28 Oct 2024AY 2013-14

Bench: Hon’Ble Shri Manu Kumar Giri & Hon’Ble Shri S.R. Raghunathaआयकर अपील सं./Ita No.1803/Chny/2019 िनधा"रण वष"/Assessment Year:2013-2014. M/S. T.V. Sundram Iyengar & The Deputy Commissioner Sons Private Limited, Vs. Of Income Tax, No.7B, Tvs Building, Corporate Circle 2, West Veli Street. Madurai. Madurai 625 001. Pan: Aabct 0159K (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ"क"ओरसे/Appellant By : Shri N.V. Balaji, Advocate ""यथ"क"ओरसे/Respondent By : Shri. Nilay Baran Som, Irs, Cit

For Appellant: Shri N.V. Balaji, AdvocateFor Respondent: Shri. Nilay Baran Som, IRS, CIT
Section 143(3)Section 263Section 35DSection 391

Dy Commissioner of Income Tax Circle-7, Pune vs. Mubea Automotive Components India Private Limited, Pune

In the result, the appeal filed by the Revenue is partly allowed for statistical purposes

ITA 694/PUN/2024[2017-18]Status: DisposedITAT Pune25 Oct 2024AY 2017-18

Bench: Shri R. K. Panda & Ms Astha Chandraassessment Year : 2017-18

For Appellant: Shri Rajendra AgiwalFor Respondent: Shri Ramnath P Murkunde
Section 143(2)

Deputy Commissioner of Income Tax-14(2)(1), Mumbai vs. Idea Cellular Limited, Mumbai

In the result, appeal of the assessee is partly allowed and appeal of the Revenue is allowed for statistical purposes

ITA 4513/MUM/2017[2010-11]Status: DisposedITAT Mumbai14 Oct 2024AY 2010-11

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GAGAN GOYAL (Accountant Member)

Section 143(3)Section 14ASection 194Section 194HSection 28Section 35DSection 36(1)(iii)Section 391Section 394Section 40

Idea Cellular Limited, Mumbai vs. Deputy Commissioner of Income Tax-3(2), Mumbai

In the result, appeal of the assessee is partly allowed and appeal of the Revenue is allowed for statistical purposes

ITA 4318/MUM/2017[2010-11]Status: DisposedITAT Mumbai14 Oct 2024AY 2010-11

Bench: IN THE INCOME TAX APPELLATE TRIBUNAL, ‘I’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA (Judicial Member), SHRI GAGAN GOYAL (Accountant Member)

Section 143(3)Section 14ASection 194Section 194HSection 28Section 35DSection 36(1)(iii)Section 391Section 394Section 40

ACIT, Circle-10, 1 New Delhi, ITO vs. Interglobe Enterprises Pvt. Ltd., Barakhamba Road, New Delhi

In the result, the appeal of the assessee is allowed and the

ITA 1/DEL/2024[2021-22]Status: DisposedITAT Delhi26 Jul 2024AY 2021-22

Bench: SHRI G.S.PANNU (Vice President), MS. MADHUMITA ROY (Judicial Member)

Section 142(1)Section 143(2)Section 143(3)Section 199

Interglobe Enterprises Private Limited, New Delhi vs. ACIT Circle 10(1), New Delhi

In the result, the appeal of the assessee is allowed and the

ITA 3915/DEL/2023[2021-22]Status: DisposedITAT Delhi26 Jul 2024AY 2021-22

Bench: SHRI G.S.PANNU (Vice President), MS. MADHUMITA ROY (Judicial Member)

Section 142(1)Section 143(2)Section 143(3)Section 199

Cognizant Technology Solutions India Private Ltd., Chennai vs. ACIT Central Circle 1(1), Chennai

In the result, appeal filed by the assessee in ITA No

ITA 45/CHNY/2023[2017-18]Status: DisposedITAT Chennai08 May 2024AY 2017-18

Bench: Shri Mahavir Singh, Hon’Ble & Shri S. R. Raghunatha, Hon’Ble

For Respondent: Shri. V. Nandakumar, CIT
Section 10ASection 115JSection 35D

ACIT, Central Circle -1(1), Chennai vs. M/S Cognizant Technology Services Privae Limited, Chennai

In the result, appeal filed by the assessee in ITA No

ITA 150/CHNY/2023[2017-18]Status: DisposedITAT Chennai08 May 2024AY 2017-18

Bench: Shri Mahavir Singh, Hon’Ble & Shri S. R. Raghunatha, Hon’Ble

For Respondent: Shri. V. Nandakumar, CIT
Section 10ASection 115JSection 35D

DCIT 2(3), Mumbai vs. Water Health Inida P.Ltd, Andhra Pradesh

In the result, appeal filed by the Revenue is dismissed

ITA 4912/MUM/2012[2008-09]Status: DisposedITAT Mumbai07 Feb 2024AY 2008-09

Bench: Shri B.R. Baskaran (Am) & Shri Aby T. Varkey (Jm)

Section 32(1)(ii)Section 35D

DCIT-6(1)(1), Mumbai vs. Aasan Corporate Solutions Pvt. Ltd., Mumbai

In the result, the appeal of the assessee is partly allowed and appeal of the revenue is dismissed

ITA 2710/MUM/2023[2017-18]Status: DisposedITAT Mumbai05 Jan 2024AY 2017-18

Bench: Shri Vikas Awasthy & Shri Amarjit Singhaasan Corporate Vs. Dcit, Circle 6(1)(1) Solutions Private Limited 563B, 5Th Floor, 4Th Floor, Piramal Tower Aayakar Bhavan, Annexe, Ganpatrao Kadam Maharishi Karve Road, Marg Lower, Parel Mumbai - 400020 Mumbai – 400013 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aajca7980P Appellant .. Respondent Dcit, Circle 6(1)(1) Vs. M/S Aasan Corporate Room No. 504, 5 Th Floor, Solutions Private Limited Araykar Bhavan 4Th Floor, Piramal Tower M.K. Road, Annexe, Ganpatrao Mumbai – 400 020 Kadam Marg Lower, Parel Mumbai – 400013 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aajca7980P Appellant .. Respondent Appellant By : Ronak Doshi A/W Priyank Gandhi Respondent By : Ajay Chandra Date Of Hearing 21.12.2023 Date Of Pronouncement 05.01.2024

For Appellant: Ronak doshi a/wFor Respondent: Ajay Chandra
Section 14ASection 23(1)(a)Section 40

Aasan Corporate Solutions Private Limited, Mumbai vs. DCIT Circle 6(1)(1), Mumbai

Appeal of the assessee is allowed for statistical purpose

ITA 1968/MUM/2023[2017-2018]Status: DisposedITAT Mumbai05 Jan 2024AY 2017-2018

Bench: Shri Vikas Awasthy & Shri Amarjit Singhaasan Corporate

For Appellant: Ronak doshi a/wFor Respondent: Ajay Chandra
Section 14ASection 23(1)(a)Section 40

United Spirits Limited, Bangalore (Successor to Sw Finance Co Limited- Formerly Known As Shaw Wallace Breweries Limited), Bangalore vs. The JCIT Special Range 7, Bangalore

The appeal of the assessee is partly allowed

ITA 3201/MUM/2014[2007-08]Status: DisposedITAT Mumbai02 Jan 2024AY 2007-08

Bench: Shri Vikas Awasthy () & Ms. Padmavathy S.(Accountat Member)

Section 115JSection 14ASection 234BSection 250Section 35D

DCIT RG. - 6(3), Mumbai vs. M/S. Kansai Nerolac Paints Ltd., Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

ITA 4607/MUM/2017[2011-12]Status: DisposedITAT Mumbai04 Dec 2023AY 2011-12

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

Section 115Section 143(2)Section 145ASection 35DSection 36(1)(va)Section 40

M/S. Kansai Nerolac Paints Ltd., Mumbai vs. DCIT RG. - 6(3), Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

ITA 4562/MUM/2017[2011-12]Status: DisposedITAT Mumbai04 Dec 2023AY 2011-12

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

Section 115Section 143(2)Section 145ASection 35DSection 36(1)(va)Section 40

Kansai Nerolac Paints Ltd, Mumbai vs. DCIT RG 6(2), Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

ITA 3642/MUM/2016[2010-11]Status: DisposedITAT Mumbai04 Dec 2023AY 2010-11

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

Section 115Section 143(2)Section 145ASection 35DSection 36(1)(va)Section 40

Kansai Nerolac Paints Limited (Erstwhile Known As Goodlass Nerolac Paints Limited), Mumbai vs. Addl. CIT, Range 6 (2), Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

ITA 3385/MUM/2014[2009-10]Status: DisposedITAT Mumbai04 Dec 2023AY 2009-10

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

Section 115Section 143(2)Section 145ASection 35DSection 36(1)(va)Section 40