India - Income Tax Act 2010 - Saarc

S. 10B I.T. ACT, 1961 1.11420[Special provisions in respect of newly established hundred per cent exportorientedundertakings 21 .10B. (1) Subject to the provisions of this section, a deduction of such profits andgains as are derived by a hundred per cent export-oriented undertakingfrom the export of articles or things or computer software for a period of tenconsecutive assessment years beginning with the assessment year relevant to the20. Substituted by the Finance Act, 2000, w.e.f. 1-4-2001. Prior to its substitution, section 10B,as inserted by the Finance Act, 1988, w.e.f. 1-4-1989 and later on amended by the FinanceAct, 1993, w.r.e.f. 1-4-1991, Finance Act, 1994, w.e.f. 1-4-1994/1-4-1995, Income-tax(Second Amendment) Act, 1998, w.e.f. 1-4-1999 and Finance Act, 1999, w.e.f. 1-4-2000, readas under :‘10B. Special provision in respect of newly established hundred per cent export-orientedundertakings.—(1) Subject to the provisions of this section, any profits and gains derivedby an assessee from a hundred per cent export-oriented undertaking (hereafter in thissection referred to as the undertaking) to which this section applies shall not be includedin the total income of the assessee.(2) This section applies to any undertaking which fulfils all the following conditions,namely :—(i) it manufactures or produces any article or thing;(ia) in relation to an undertaking which begins to manufacture or produce any articleor thing on or after the 1st day of April, 1994, its exports of such articles and thingsare not less than seventy-five per cent of the total sales thereof during the previousyear;(ii) it is not formed by the splitting up, or the reconstruction, of a business already inexistence :Provided that this condition shall not apply in respect of any undertaking which isformed as a result of the re-establishment, reconstruction or revival by the assesseeof the business of any such industrial undertaking as is referred to in section 33B,in the circumstances and within the period specified in that section;(iii) it is not formed by the transfer to a new business of machinery or plant previouslyused for any purpose.Explanation.—The provisions of Explanation 1 and Explanation 2 to sub-section (2) ofsection 80-I shall apply for the purposes of clause (iii) of this sub-section as they apply forthe purposes of clause (ii) of that sub-section.(3) The profits and gains referred to in sub-section (1) shall not be included in the totalincome of the assessee in respect of any ten consecutive assessment years, beginning withthe assessment year relevant to the previous year in which the undertaking begins tomanufacture or produce articles or things.(4) Notwithstanding anything contained in any other provision of this Act, in computingthe total income of the assessee of the previous year relevant to the assessment yearimmediately succeeding the last of the relevant assessment years, or of any previous yearrelevant to any subsequent assessment year,—(i) section 32, section 32A, section 33 and clause (ix) of sub-section (1) of section 36 shallapply as if every allowance or deduction referred to therein and relating to orallowable for any of the relevant assessment years, in relation to any building,machinery, plant or furniture used for the purposes of the business of theundertaking in the previous year relevant to such assessment year or any expenditureincurred for the purposes of such business in such previous year had beengiven full effect to for that assessment year itself and accordingly sub-section (2) ofsection 32, clause (ii) of sub-section (3) of section 32A, clause (ii) of sub-section (2)of section 33 or the second proviso to clause (ix) of sub-section (1) of section 36, asthe case may be, shall not apply in relation to any such allowance or deduction;(Contd. on p. 1.115)