CHAPTER III
DIRECT TAXES
Income-tax
Amendment of section 10AA.
6. In section 10AA of the Income-tax Act, in sub-section (7), the following proviso shall be inserted, namely:—
"Provided that the provisions of this sub-section [as amended by section 6 of the Finance (No. 2) Act, 2009][33 of 2009] shall have effect for the assessment year beginning on the 1st day of April, 2006 and subsequent assessment years.".
Notes on Clauses:
Clause 6 of the Bill seeks to amend section 10AA of the Incometax Act relating to special provision in respect of newly established Units in Special Economic Zones.
Under the existing provisions contained in sub-section (7) of the aforesaid section, as they would stand before section 6 of the Finance (No.2) Act, 2009 comes into force, the profits derived from the export of articles or things or services shall be the amount which bears to the profits of the business of the undertaking, being the Unit, the same proportion as the export turnover in respect of such articles or things or services bears to the total turnover of the business carried on by the assessee.
The aforesaid provision was amended by section 6 of the Finance (No.2) Act, 2009, so as to substitute the reference to "assessee" by the word "undertaking". The said amendment will become effective from 1st April, 2010 and accordingly, apply in relation to the assessment year 2010-2011 and subsequent years.
It is proposed to insert a proviso to the aforesaid sub-section (7) so as to make the provisions of the said amended sub-section effective retrospectively for the assessment year beginning on 1st April, 2006 and subsequent assessment years.
This amendment will take effect retrospectively from 1st April, 2010.
