India - Income Tax Act 2010 - Saarc

1.193 CH. IV - COMPUTATION OF BUSINESS INCOME S. 33Aassessment year shall be allowed before any amount carried forwardfrom a later assessment year.(3) The deduction under sub-section (1) shall be allowed only if the followingconditions are fulfilled, namely :—(i) the particulars prescribed 99 in this behalf have been furnished by theassessee;(ii) an amount equal to seventy-five per cent of the development allowanceto be actually allowed is debited to the profit and loss accountof the relevant previous year and credited to a reserve account to beutilised by the assessee during a period of eight years next followingfor the purposes of the business of the undertaking, other than—(a) for distribution by way of dividends or profits; or(b) for remittance outside India as profits or for the creation of anyasset outside India; and(iii) such other conditions as may be prescribed.(4) If any such land is sold or otherwise transferred by the assessee to anyperson at any time before the expiry of eight years from the end of the previousyear in which the deduction under sub-section (1) was allowed, any allowanceunder this section shall be deemed to have been wrongly made for the purposesof this Act, and the provisions of sub-section (5A) of section 155 shall applyaccordingly :Provided that this sub-section shall not apply—(i) where the land is sold or otherwise transferred by the assessee to theGovernment, a local authority, a corporation established by a Central,State or Provincial Act, or a 1 Government company as defined insection 617 of the Companies Act, 1956 (1 of 1956); or(ii) where the sale or transfer of the land is made in connection with theamalgamation or succession referred to in sub-section (5) or subsection(6).2[(5) Where, in a scheme of amalgamation, the amalgamating company sells orotherwise transfers to the amalgamated company any land in respect of whichdevelopment allowance has been allowed to the amalgamating company undersub-section (1),—(a) the amalgamated company shall continue to fulfil the conditionsmentioned in sub-section (3) in respect of the reserve created by theamalgamating company and in respect of the period within whichsuch land shall not be sold or otherwise transferred and in default ofany of these conditions, the provisions of sub-section (5A) of section155 shall apply to the amalgamated company as they would haveapplied to the amalgamating company had it committed the default;and99. See rule 8A and Form Nos. 4, 5 and 5A.1. For definition of “Government company”, see footnote 71 on p. 1.23 ante.2. Substituted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.