India - Income Tax Act 2010 - Saarc

S. 43 I.T. ACT, 1961 1.27281(3) “plant” 82 includes ships, vehicles, books 82 , scientific apparatus andsurgical equipment used for the purposes of the business or profession83 [but does not include tea bushes or livestock] 84 [or buildings orfurniture and fittings];(4) 85 [(i) “scientific research” means any activities for the extension ofknowledge in the fields of natural or applied science includingagriculture, animal husbandry or fisheries;](ii) references to expenditure incurred on scientific research includeall expenditure incurred for the prosecution, or the provision offacilities for the prosecution, of scientific research, but do not includeany expenditure incurred in the acquisition of rights in, or arising outof, scientific research;(iii) references to scientific research related to a business or class ofbusiness include—(a) any scientific research which may lead to or facilitate an extensionof that business or, as the case may be, all businesses of that class;(b) any scientific research of a medical nature which has a specialrelation to the welfare of workers employed in that business or,as the case may be, all businesses of that class;86(5) 87 “speculative transaction” 88 means a transaction in which a contract 88for the purchase or sale of any commodity, including stocks andshares, is periodically or ultimately settled otherwise than by theactual delivery 88 or transfer of the commodity or scrips:Provided that for the purposes of this clause—(a) a contract in respect of raw materials or merchandise enteredinto by a person in the course of his manufacturing or merchantingbusiness to guard against loss through future price fluctuationsin respect of his contracts for actual delivery of goods manufacturedby him or merchandise sold by him; or(b) a contract in respect of stocks and shares entered into by a dealeror investor therein to guard against loss in his holdings of stocksand shares through price fluctuations; or(c) a contract entered into by a member of a forward market or astock exchange in the course of any transaction in the nature of81. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.82. For the meaning of the terms “plant” and “books”, see Taxmann’s Direct Taxes Manual,Vol. 3.83. Inserted by the Finance Act, 1995, w.r.e.f. 1-4-1962.84. Inserted by the Finance Act, 2003, w.e.f. 1-4-2004.85. Substituted by the Finance Act, 1968, w.e.f. 1-4-1969.86. See also Circular No. 23D(XXXIX-4), dated 12-9-1960 and Instruction No. 3/2010, dated23-3-2010. For details, see Taxmann’s Master Guide to Income-tax Act.87. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.88. For the meaning of the terms/expressions “speculative transaction”, “contract” and“actual delivery”, see Taxmann’s Direct Taxes Manual, Vol. 3.