India - Income Tax Act 2010 - Saarc

S. 10AA I.T. ACT, 1961 1.112a Special Economic Zone, the period of ten consecutive assessment yearsreferred to above shall be reckoned from the assessment year relevant tothe previous year in which the Unit began to manufacture, or produce or processsuch articles or things or services in such free trade zone or export processingzone :Provided also that where a Unit initially located in any free trade zone orexport processing zone is subsequently located in a Special Economic Zone byreason of conversion of such free trade zone or export processing zone into aSpecial Economic Zone and has completed the period of ten consecutiveassessment years referred to above, it shall not be eligible for deduction fromincome as provided in clause (ii) of sub-section (1) with effect from the 1st dayof April, 2006.17[(4) This section applies to any undertaking, being the Unit, which fulfils all thefollowing conditions, namely:—(i) it has begun or begins to manufacture or produce articles or things orprovide services during the previous year relevant to the assessmentyear commencing on or after the 1st day of April, 2006 in any SpecialEconomic Zone;(ii) it is not formed by the splitting up, or the reconstruction, of a businessalready in existence:Provided that this condition shall not apply in respect of any undertaking,being the Unit, which is formed as a result of the re-establishment,reconstruction or revival by the assessee of the business of anysuch undertaking as is referred to in section 33B, in the circumstancesand within the period specified in that section;(iii) it is not formed by the transfer to a new business, of machinery orplant previously used for any purpose.Explanation.—The provisions of Explanations 1 and 2 to sub-section (3) of section80-IA shall apply for the purposes of clause (iii) of this sub-section as theyapply for the purposes of clause (ii) of that sub-section.](5) Where any undertaking being the Unit which is entitled to the deductionunder this section is transferred, before the expiry of the period specified in thissection, to another undertaking, being the Unit in a scheme of amalgamation ordemerger,—(a) no deduction shall be admissible under this section to the amalgamatingor the demerged Unit, being the company for the previous yearin which the amalgamation or the demerger takes place; and(b) the provisions of this section shall, as they would have applied to theamalgamating or the demerged Unit being the company as if theamalgamation or demerger had not taken place.17. Substituted by the Finance Act, 2007, w.r.e.f. 10-2-2006. Prior to its substitution, subsection(4) read as under :“(4) This section applies to any undertaking being the Unit, which has begun or begins tomanufacture or produce articles or things or services during the previous year relevantto the assessment year commencing on or after the 1st day of April, 2006, in any SpecialEconomic Zone.”