India - Income Tax Act 2010 - Saarc

1.185 CH. IV - COMPUTATION OF BUSINESS INCOME S. 32ABthat previous year and shall accordingly be chargeable to income-tax as theincome of that previous year.(7) Where any asset acquired in accordance with the scheme is sold or otherwisetransferred in any previous year by the assessee to any person at any time beforethe expiry of eight years from the end of the previous year in which it wasacquired, such part of the cost of such asset as is relatable to the deductionsallowed under sub-section (1) shall be deemed to be the profits and gains ofbusiness or profession of the previous year in which the asset is sold or otherwisetransferred and shall accordingly be chargeable to income-tax as the income ofthat previous year:Provided that nothing in this sub-section shall apply—(i) where the asset is sold or otherwise transferred by the assessee toGovernment, a local authority, a corporation established by or undera Central, State or Provincial Act or a 66 Government company asdefined in section 617 of the Companies Act, 1956 (1 of 1956); or(ii) where the sale or transfer of the asset is made in connection with thesuccession of a firm by a company in the business or professioncarried on by the firm as a result of which the firm sells or otherwisetransfers to the company any asset and the scheme continues to applyto the company in the manner applicable to the firm.Explanation.—The provisions of clause (ii) of the proviso shall apply onlywhere—(i) all the properties of the firm relating to the business or professionimmediately before the succession become the properties of thecompany;(ii) all the liabilities of the firm relating to the business or professionimmediately before the succession become the liabilities of thecompany; and(iii) all the shareholders of the company were partners of the firmimmediately before the succession.(8) The Central Government may, if it considers it necessary or expedient so todo, by notification in the Official Gazette, omit any article or thing from the listof articles or things specified in the Eleventh Schedule.(9) The Central Government may, after making such inquiry as it may think fit,direct, by notification in the Official Gazette, that the provisions of this sectionshall not apply to any class of assessees, with effect from such date as it mayspecify in the notification.67[(10) Where a deduction has been allowed to an assessee under this section inany assessment year, no deduction shall be allowed to the assessee under subsection(1) of section 32A in the said assessment year (hereinafter referred to asthe initial assessment year) and a block of further period of four years beginningwith the assessment year immediately succeeding the initial assessment year].66. For definition of “Government company”, see footnote 71 on p. 1.23 ante.67. Substituted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.