India - Income Tax Act 2010 - Saarc

1.417 CH. VI-A - DEDUCTIONS IN RESPECT OF CERTAIN INCOMES S. 80HH(5) Where the assessee is a person other than a company or a co-operative society,the deduction under sub-section (1) shall not be admissible unless the accountsof the industrial undertaking or the business of the hotel for the previous yearrelevant to the assessment year for which the deduction is claimed have beenaudited by an accountant as defined in the Explanation below sub-section (2) ofsection 288 and the assessee furnishes, along with his return of income, the reportof such audit in the prescribed form 8 duly signed and verified by such accountant.(6) Where any goods held for the purposes of the business of the industrialundertaking or the hotel are transferred to any other business carried on by theassessee, or where any goods held for the purposes of any other business carriedon by the assessee are transferred to the business of the industrial undertakingor the hotel and, in either case, the consideration, if any, for such transfer asrecorded in the accounts of the business of the industrial undertaking or the hoteldoes not correspond to the market value of such goods as on the date of thetransfer, then, for the purposes of the deduction under this section, the profitsand gains of the industrial undertaking or the business of the hotel shall becomputed as if the transfer, in either case, had been made at the market valueof such goods as on that date :Provided that where, in the opinion of the 9 [Assessing] Officer, the computationof the profits and gains of the industrial undertaking or the business of the hotelin the manner hereinbefore specified presents exceptional difficulties, the9[Assessing] Officer may compute such profits and gains on such reasonablebasis as he may deem fit.Explanation.—In this sub-section, “market value” in relation to any goods meansthe price that such goods would ordinarily fetch on sale in the open market.(7) Where it appears to the 9 [Assessing] Officer that, owing to the closeconnection between the assessee carrying on the business of the industrialundertaking or the hotel to which this section applies and any other person, orfor any other reason, the course of business between them is so arranged thatthe business transacted between them produces to the assessee more than theordinary profits which might be expected to arise in the business of the industrialundertaking or the hotel, the 10 [Assessing] Officer shall, in computing the profitsand gains of the industrial undertaking or the hotel for the purposes of thededuction under this section, take the amount of profits as may be reasonablydeemed to have been derived therefrom.(8) 11 [***](9) In a case where the assessee is entitled also to the deduction under 12 [section80-I or] section 80J in relation to the profits and gains of an industrial undertakingor the business of a hotel to which this section applies, effect shall first be givento the provisions of this section.8. See rule 18B and Form No. 10C for form of audit report.9. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.10. Substituted, ibid.11. Omitted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.12. Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1981.