India - Income Tax Act 2010 - Saarc

S. 35AD I.T. ACT, 1961 1.22244[(6) Notwithstanding anything contained in any other provision of this Act,where—(i) the approval of the National Committee, granted to an association orinstitution, is withdrawn under sub-section (4) or the notification inrespect of eligible project or scheme is withdrawn in the case of apublic sector company or local authority or an association or institutionunder sub-section (5); or(ii) a company has claimed deduction under the proviso to sub-section (1)in respect of any expenditure incurred directly on the eligible projector scheme and the approval for such project or scheme is withdrawnby the National Committee under sub-section (5),the total amount of the payment received by the public sector company or thelocal authority or the association or the institution, as the case may be, in respectof which such company or authority or association or institution has furnisheda certificate referred to in clause (a) of sub-section (2) or the deduction claimedby a company under the proviso to sub-section (1) shall be deemed to be theincome of such company or authority or association or institution, as the casemay be, for the previous year in which such approval or notification is withdrawnand tax shall be charged on such income at the maximum marginal rate in forcefor that year.]Explanation.—For the purposes of this section,—(a) “National Committee” means the Committee constituted by theCentral Government, from amongst persons of eminence in publiclife, in accordance with the rules made under this Act;(b) “eligible project or scheme” means such project or scheme forpromoting the social and economic welfare of, or the uplift of, thepublic as the Central Government may, by notification in the OfficialGazette, specify 45 in this behalf on the recommendations of theNational Committee.]46[Deduction in respect of expenditure on specified business.35AD. (1) An assessee shall be allowed a deduction in respect of the whole of anyexpenditure of capital nature incurred, wholly and exclusively, for thepurposes of any specified business carried on by him during the previous year inwhich such expenditure is incurred by him :Provided that the expenditure incurred, wholly and exclusively, for the purposesof any specified business, shall be allowed as deduction during the previous yearin which he commences operations of his specified business, if—(a) the expenditure is incurred prior to the commencement of its operations;and(b) the amount is capitalised in the books of account of the assessee on thedate of commencement of its operations.(2) This section applies to the specified business which fulfils all the followingconditions, namely :—(i) it is not set up by splitting up, or the reconstruction, of a businessalready in existence;(ii) it is not set up by the transfer to the specified business of machineryor plant previously used for any purpose;44. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003.45. For notified eligible projects and schemes, see Taxmann’s Direct Taxes Circulars andTaxmann’s Yearly Tax Digest & Referencer.46. Inserted by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010.