TMI BlogReserves for shipping businessX X X X Extracts X X X X X X X X Extracts X X X X ..... t of the previous year in respect of which the deduction is to be allowed and credited to a reserve account, to be utilised in the manner laid down in sub-section (2) : ] 3 [Provided that where the aggregate of the amounts carried to such reserve account from time to time exceeds twice the aggregate of the amounts of the paid-up share capital, the general reserves and amount credited to the share premium account of the assessee, no allowance under this sub-section shall be made in respect of such excess : ] 4 [Provided further that for five assessment years commencing on or after the 1st day of April, 2001 and ending before the 1st day of April, 2006, the provisions of this sub-section shall have effect as if for the words an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e previous year in which it was acquired, the amount so utilised in acquiring the ship, shall be deemed to be the profits,- ( i ) in a case referred to in clause ( a ), in the year in which the amount was so utilised ; or ( ii ) in a case referred to in clause ( b ), in the year immediately following the period of eight years specified in sub-section (2) ; or ( iii ) in a case referred to in clause ( c ), in the year in which the sale or transfer took place, and shall be charged to tax accordingly. 8 [ (4) Where the ship is sold or otherwise transferred (other than in any scheme of demerger) after the expiry of the period specified in clause ( c ) of sub-section (3) and the sale proceeds are not utilised for the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , there shall, in accordance with and subject to the provisions of this section, be allowed a deduction of an amount, not exceeding the total income (computed before making any deduction under this section and Chapter VI-A), as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account to be utilised in the manner laid down in sub-section (2) : 3. Substituted by the Finance Act, 2002, w.e.f. 1-4-2003. Prior to its substitution, first proviso read as under : Provided that where the aggregate of the amounts carried to such reserve account from time to time exceeds twice the amount of the paid-up share capital (excluding the amounts capitalised ..... X X X X Extracts X X X X X X X X Extracts X X X X
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