India - Income Tax Act 2010 - Saarc

1.119 CH. III - INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME S. 10B(9A) 32 [Omitted by the Finance Act, 2003, w.e.f. 1-4-2004.]Explanation 1.— 33 [Omitted by the Finance Act, 2003, w.e.f. 1-4-2004.]Explanation 2.—For the purposes of this section,—(i) “computer software” means—(a) any computer programme recorded on any disc, tape, perforatedmedia or other information storage device; or(b) any customized electronic data or any product or service ofsimilar nature as may be notified 34 by the Board,which is transmitted or exported from India to any place outside Indiaby any means;(ii) “convertible foreign exchange” means foreign exchange which is forthe time being treated by the Reserve Bank of India as convertibleforeign exchange for the purposes of the Foreign Exchange RegulationAct, 1973 (46 of 1973), and any rules made thereunder or anyother corresponding law for the time being in force;32. Prior to its omission, sub-section (9A), as inserted by the Finance Act, 2002, w.e.f. 1-4-2003,read as under :“(9A) Notwithstanding anything contained in sub-section (9), where as a result ofreorganisation of business, a firm or a sole proprietary concern is succeeded by a companyand the ownership or beneficial interest in the undertaking of the firm or the soleproprietary concern is transferred to the company, the deduction under sub-section (1)in respect of such undertaking shall be allowed to the company, as the same would havebeen allowed to such firm or sole proprietary concern, as the case may be, if thereorganisation had not taken place:Provided that,—(a) in the case of a firm, the aggregate of the shareholding in the company of thepartners of the firm is not less than fifty-one per cent of the total voting power inthe company and their shareholding continues to be as such for the period forwhich the company is eligible for deduction under this section;(b) in the case of a sole proprietary concern, the shareholding of the sole proprietor inthe company is not less than fifty-one per cent of the total voting power in thecompany and his shareholding continues to remain as such for the period for whichthe company is eligible for deduction under this section.”33. Prior to its omission, Explanation 1, as amended by the Finance Act, 2001, w.e.f. 1-4-2001,read as under :“Explanation 1.—For the purposes of this section, in the case of a company, where on thelast day of any previous year, the shares of the company carrying not less than fifty-oneper cent of the voting power are not beneficially held by persons who held the shares ofthe company carrying not less than fifty-one per cent of the voting power on the last dayof the year in which the undertaking was set up, the company shall be presumed to havetransferred its ownership or the beneficial interest in the undertaking :Provided that nothing contained in this Explanation shall apply to any change in theshareholding of the company as a result of—(a) its becoming a company in which the public are substantially interested; or(b) disinvestment of its equity shares by any venture capital company or venturecapital fund.”34. For notified Information Technology enabled products or services, see Taxmann’s MasterGuide to Income-tax Act.