India - Income Tax Act 2010 - Saarc

S. 41 I.T. ACT, 1961 1.264(2A) 43 [***](3) Where an asset representing expenditure of a capital nature on scientificresearch within the meaning of clause (iv) of sub-section (1), 44 [or clause (c) ofsub-section (2B),] of section 35, read with clause (4) of section 43, is sold, withouthaving been used for other purposes, and the proceeds of the sale together withthe total amount of the deductions made under clause (i) 45 [or, as the case maybe, the amount of the deduction under clause (ia)] of sub-section (2), 46 [or clause(c) of sub-section (2B),] of section 35 exceed the amount of the capital expenditure,the excess or the amount of the deductions so made, whichever is the less,shall be chargeable to income-tax as income of the business or profession of theprevious year in which the sale took place.Explanation.—Where the moneys payable in respect of any asset referred to inthis sub-section become due in a previous year in which the business is no longerin existence, the provisions of this sub-section shall apply as if the business is inexistence in that previous year.47(4) Where a deduction has been allowed in respect of a bad debt or part of debtunder the provisions of clause (vii) of sub-section (1) of section 36, then, if theamount subsequently recovered on any such debt or part is greater than thedifference between the debt or part of debt and the amount so allowed,the excess shall be deemed to be profits and gains of business or profession, andaccordingly chargeable to income-tax as the income of the previous year inwhich it is recovered, whether the business or profession in respect of which thededuction has been allowed is in existence in that year or not.48[Explanation.—For the purposes of sub-section (3),—(1) “moneys payable” in respect of any building, machinery, plant orfurniture includes—(a) any insurance, salvage or compensation moneys payable inrespect thereof;(b) where the building, machinery, plant or furniture is sold, the pricefor which it is sold,so, however, that where the actual cost of a motor car is, in accordancewith the proviso to clause (1) of section 43, taken to be twentyfivethousand rupees, the moneys payable in respect of such motorcar shall be taken to be a sum which bears to the amount for whichthe motor car is sold or, as the case may be, the amount of anyinsurance, salvage or compensation moneys payable in respect43. Omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f.1-4-1988. Original sub-section (2A) was inserted by the Taxation Laws (Amendment) Act,1970, w.e.f. 1-4-1971.44. Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1981.45. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.46. Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1981.47. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.48. Substituted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986,w.e.f. 1-4-1988.