TMI BlogDeduction in respect of profits and gains from industrial undertakings after a certain date, etc.X X X X Extracts X X X X X X X X Extracts X X X X ..... -section (1), in relation to any profits and gains derived by an assessee from- ( i ) an industrial undertaking which begins to manufacture or produce articles or things or to operate its cold storage plant or plants; or ( ii ) a ship which is first brought into use; or ( iii ) the business of a hotel which starts functioning, on or after the 1st day of April, 1990, 5 [ but before the 1st day of April, 1991 ], there shall, in accordance with and subject to the provisions of this section, be allowed in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to twenty-five per cent thereof : Provided that in the case of an assessee, being a company, the provisions of this sub-section shall have effect in relation to profits and gains derived from an industrial undertaking or a ship or the business of a hotel as if for the words twenty-five per cent , the words thirty per cent had been substituted .] (2) This section applies to any industrial undertaking which fulfils all the following conditions, namely :- ( i ) it is not formed by the splitting up, or the reconstruction, of a business already in existence; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation 2 .- Where in the case of an industrial undertaking, any machinery or plant or any part thereof previously used for any purpose is transferred to a new business and the total value of the machinery or plant or part so transferred does not exceed twenty per cent of the total value of the machinery or plant used in the business, then, for the purposes of clause ( ii ) of this sub-section, the condition specified therein shall be deemed to have been complied with. Explanation 3 .- For the purposes of this sub-section, small-scale industrial undertaking shall have the same meaning as in clause ( b ) of the Explanation below sub-section (8) of section 80HHA. (3) This section applies to any ship, where all the following conditions are fulfilled, namely :- ( i ) it is owned by an Indian company and is wholly used for the purposes of the business carried on by it; ( ii ) it was not, previous to the date of its acquisition by the Indian company, owned or used in Indian territorial waters by a person resident in India; and ( iii ) it is brought into use by the Indian company at any time within the period of 7 [ ten ] years next following the 1st day of Apri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years , the words nine assessment years had been substituted : 11 [Provided further that in the case of an assessee carrying on the business of repairs to ocean-going vessels or other powered craft, the provisions of this sub-section shall have effect as if for the words seven assessment years , the words four assessment years had been substituted :] 12 [Provided also that in the case of- ( i ) an industrial undertaking which begins to manufacture or produce articles or things or to operate its cold storage plant or plants; or ( ii ) a ship which is first brought into use; or ( iii ) the business of a hotel which starts functioning, on or after the 1st day of April, 1990 13 [ but before the 1st day of April, 1991 ] , provisions of this sub-section shall have effect as if for the words seven assessment years , the words nine assessment years had been substituted : Provided also that in the case of an assessee, being a co-operative society, deriving profits and gains from an industrial undertaking or a ship or a hotel referred to in the third proviso, the provisions of that proviso shall have effect as if for the words nine assessment years , ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... correspond to the market value of such goods as on the date of the transfer, then, for the purposes of the deduction under this section, the profits and gains of the industrial undertaking or the business of the hotel or the operation of the ship 19 [ or the business of repairs to ocean-going vessels or other powered craft ] shall be computed as if the transfer, in either case, had been made at the market value of such goods as on that date : Provided that where, in the opinion of the 20 [ Assessing ] Officer, the computation of the profits and gains of the industrial undertaking or the business of the hotel or the operation of the ship 21 [ or the business of repairs to ocean-going vessels or other powered craft ] in the manner hereinbefore specified presents exceptional difficulties, the 22 [ Assessing ] Officer may compute such profits and gains on such reasonable basis as he may deem fit. Explanation .-In this sub-section, market value , in relation to any goods, means the price that such goods would ordinarily fetch on sale in the open market. (9) Where it appears to the 23 [ Assessing ] Officer that, owing to the close connection between the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1990, w.e.f. 1-4-1990 which was earlier substituted for four by the Finance Act, 1985, w.e.f. 1-4-1985. 8. Substituted for 1995 by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991. Earlier 1995 was substituted for 1990 by the Finance Act, 1990, w.e.f. 1-4-1990 which was earlier substituted for 1985 by the Finance Act, 1985, w.e.f. 1-4-1985. 9. Inserted by the Finance Act, 1983, w.e.f. 1-4-1984. 10. Inserted by the Finance Act, 1983, w.e.f. 1-4-1984. 11. Inserted by the Finance Act, 1983, w.e.f. 1-4-1984. 12. Inserted by the Finance Act, 1990, w.e.f. 1-4-1990. 13. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991. 14. Inserted by the Finance Act, 1983, w.e.f. 1-4-1984. 15. Inserted by the Finance Act, 1983, w.e.f. 1-4-1984. 16. Inserted by the Finance Act, 1983, w.e.f. 1-4-1984. 17. Inserted by the Finance Act, 1983, w.e.f. 1-4-1984. 18. Inserted by the Finance Act, 1983, w.e.f. 1-4-1984. 19 . Inserted by the Finance Act, 1983, w.e.f. 1-4-1984. 20. Substituted for Income-tax by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 21. Inserted by the Finance Act, 1983, w.e.f. 1-4-1984. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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