India - Income Tax Act 2010 - Saarc

1.211 CH. IV - COMPUTATION OF BUSINESS INCOME S. 35(ii) notwithstanding anything contained in clause (i), where an assetrepresenting expenditure of a capital nature 80 [incurred before the1st day of April, 1967,] ceases to be used in a previous year forscientific research related to the business and the value of the assetat the time of the cessation, together with the aggregate of deductionsalready allowed under clause (i) falls short of the said expenditure,then—(a) there shall be allowed a deduction for that previous year of anamount equal to such deficiency, and(b) no deduction shall be allowed under that clause for that previousyear or for any subsequent previous year ;(iii) if the asset mentioned in clause (ii) is sold, without having been usedfor other purposes, in the year of cessation, the sale price shall betaken to be the value of the asset at the time of the cessation ; and ifthe asset is sold, without having been used for other purposes, in aprevious year subsequent to the year of cessation, and the sale pricefalls short of the value of the asset taken into account at the time ofcessation, an amount equal to the deficiency shall be allowed as adeduction for the previous year in which the sale took place ;(iv) where a deduction is allowed for any previous year under this sectionin respect of expenditure represented wholly or partly by an asset, nodeduction shall be allowed under 81 [clause (ii) of sub-section (1)] ofsection 32 for the same 82 [or any other] previous year in respect ofthat asset ;(v) where the asset 83 [mentioned in clause (ii)] is used in the business afterit ceases to be used for scientific research related to that business,depreciation shall be admissible under 84 [clause (ii) of sub-section (1)]of section 32.85[(2A) 86 Where 87 [, before the 1st day of March, 1984,] the assessee pays any sum88[(being any sum paid with a specific direction that the sum shall not be used forthe acquisition of any land or building or construction of any building)] to ascientific research association or university or college or other institutionreferred to in clause (ii) of sub-section (1) 89 [or to a public sector company] to beused for scientific research undertaken under a programme approved in this80. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.81. Substituted for “clauses (i), (ii), (iia), (iii) and (iv) of sub-section (1) or under sub-section(1A)” by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f.1-4-1988.82. Inserted by the Finance (No. 2) Act, 1980, w.r.e.f. 1-4-1962.83. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.84. Substituted for “clauses (i), (ii) and (iii) of sub-section (1)” by the Taxation Laws(Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1988.85. Inserted by the Direct Taxes (Amendment) Act, 1974, w.e.f. 1-4-1974.86. For guidelines for approval of scientific research programmes and list of approvedprogrammes, see Taxmann’s Direct Taxes Circulars.87. Inserted by the Finance Act, 1984, w.e.f. 1-4-1984.88. Inserted by the Finance (No. 2) Act, 1983, w.e.f. 1-4-1984.89. Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-9-1980.