India - Income Tax Act 2010 - Saarc

1.203 CH. IV - COMPUTATION OF BUSINESS INCOME S. 33AC33[Provided that where the aggregate of the amounts carried to such reserveaccount from time to time exceeds twice the aggregate of the amounts of thepaid-up share capital, the general reserves and amount credited to the sharepremium account of the assessee, no allowance under this sub-section shall bemade in respect of such excess :]34[Provided further that for five assessment years commencing on or after the1st day of April, 2001 and ending before the 1st day of April, 2006, the provisionsof this sub-section shall have effect as if for the words “an amount not exceedingfifty per cent of profits”, the words “an amount not exceeding the profits” hadbeen substituted:]35[Provided also that no deduction shall be allowed under this section for anyassessment year commencing on or after the 1st day of April, 2005.](2) The amount credited to the reserve account under sub-section (1) shall beutilised by the assessee before the expiry of a period of eight years next followingthe previous year in which the amount was credited—(a) for acquiring a new ship for the purposes of the business ofthe assessee ; and(b) until the acquisition of a new ship, for the purposes of the business ofthe assessee other than for distribution by way of dividends or profitsor for remittance outside India as profits or for the creation of anyasset outside India.(3) Where any amount credited to the reserve account under sub-section (1),—(a) has been utilised for any purpose other than that referred to in clause(a) or clause (b) of sub-section (2), the amount so utilised ; or(b) has not been utilised for the purpose specified in clause (a) of subsection(2), the amount not so utilised ; or(c) has been utilised for the purpose of acquiring a new ship as specifiedin clause (a) of sub-section (2), but such ship is sold or otherwisetransferred 36 [, other than in any scheme of demerger] by the assesseeto any person at any time before the expiry of 37 [three] years fromthe end of the previous year in which it was acquired, the amount soutilised in acquiring the ship,33. Substituted by the Finance Act, 2002, w.e.f. 1-4-2003. Prior to its substitution, first provisoread as under :“Provided that where the aggregate of the amounts carried to such reserve account fromtime to time exceeds twice the amount of the paid-up share capital (excluding the amountscapitalised from reserves) of the assessee, no allowance under this sub-section shall bemade in respect of such excess.”34. Inserted by the Finance Act, 2000, w.e.f. 1-4-2001.35. Inserted by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005.36. Inserted by the Finance Act, 1999, w.e.f. 1-4-2000.37. Substituted for “eight” by the Finance Act, 2003, w.e.f. 1-4-2004.