India - Income Tax Act 2010 - Saarc

1.175 CH. IV - COMPUTATION OF BUSINESS INCOME S. 32A25[(i) in a case where the previous year ends before the 1st day ofAugust, 1980, ten lakh rupees ;(ii) in a case where the previous year ends after the 31st day of July,1980, but before the 18th day of March, 1985, twenty lakh rupees;and(iii) in a case where the previous year ends after the 17th day ofMarch, 1985, thirty-five lakh rupees,]]and for this purpose the value of any machinery or plant shall be,—(a) in the case of any machinery or plant owned by the assessee, theactual cost thereof to the assessee ; and(b) in the case of any machinery or plant hired by the assessee, theactual cost thereof as in the case of the owner of such machineryor plant.26[(2A) The deduction under sub-section (1) shall not be denied in respect of anymachinery or plant installed and used mainly for the purposes of business ofconstruction, manufacture or production of any article or thing, not being anarticle or thing specified in the list in the Eleventh Schedule, by reason only thatsuch machinery or plant is also used for the purposes of business of construction,manufacture or production of any article or thing specified in the said list.]26[(2B) Where any new machinery or plant is installed after the 30th day of June,1977, but before the 1st day of April, 27 [1987], for the purposes of business ofmanufacture or production of any article or thing and such article or thing—(a) is manufactured or produced by using any technology (including anyprocess) or other know-how developed in, or(b) is an article or thing invented in,a laboratory owned or financed by the Government, or a laboratoryowned by a public sector company or a University or by an institutionrecognised in this behalf by the prescribed authority, 28the provisions of sub-section (1) shall have effect in relation to such machineryor plant as if for the words “twenty-five per cent”, the words “thirty-five per cent”had been substituted, if the following conditions are fulfilled, namely :—(i) the right to use such technology (including any process) or otherknow-how or to manufacture or produce such article or thing hasbeen acquired from the owner of such laboratory or any personderiving title from such owner ;(ii) the assessee furnishes, along with his return of income for theassessment year for which the deduction is claimed, a certificate fromthe prescribed authority 28 to the effect that such article or thing is25. Substituted by the Finance Act, 1986, w.r.e.f. 1-4-1985.26. Inserted by the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978.27. Substituted for “1982” by the Finance Act, 1982, w.e.f. 1-4-1982.28. The prescribed authority under rule 5AA is Secretary, Department of Scientific &Industrial Research, Government of India.