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43. Special provisions relating to business reorganisation
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43. Special provisions relating to business reorganisation.—(1) The deduction for any capital allowance referred to in section 37 shall, in a case where business reorganisation has taken place during the financial year, be allowed in accordance with the provisions of this section.
(2) The amount of deduction allowable to the predecessor shall be determined in accordance with the formula—
Where A = the amount of deduction allowable as if the business reorganisation had not taken place ;
B = the number of days comprised in the period beginning with the first day of the financial year and ending on the day immediately preceding the date of business reorganisation ;
C = the total number of days in the financial year in which the business reorganisation has taken place.
(3) The amount of deduction to the successor shall be determined in accordance with the formula —
Where A = the amount of deduction allowable as if the business reorganisation had not taken place ;
B = the number of days comprised in the period beginning with the date of business reorganisation and ending on the last day of the financial year ; and
C = the total number of days in the financial year in which the business reorganisation has taken place.
Clause 43 provides for computation of deduction on account of capital allowance in a case where business reorganisation has taken place during the financial year. The amount of deduction allowable to the predecessor shall be determined in accordance with the formula—
Where
A = the amount of deduction allowable as if the business reorganisation had not taken place ;
B = the number of days comprised in the period beginning with the first day of the financial year and ending on the day immediately preceding the date of business reorganisation ;
C = the total number of days in the financial year in which the business reorganisation has taken place.
The said clause further provides that the the amount of deduction to the successor shall be determined in accordance with the formula —
Where
A = the amount of deduction allowable as if the business reorganisation had not taken place ;
B = the number of days comprised in the period beginning with the date of business reorganisation and ending on the last day of the financial year ; and
C = the total number of days in the financial year in which the business reorganisation has taken place.
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