India - Income Tax Act 2010 - Saarc

1.419 CH. VIA - DEDUCTIONS IN RESPECT OF CERTAIN INCOMES S. 80HHAtransferred to a new business and the total value of the machinery or plant or partso transferred does not exceed twenty per cent of the total value of themachinery or plant used in the business, then, for the purposes of clause (iii) ofthis sub-section, the condition specified therein shall be deemed to have beenfulfilled.(3) The deduction specified in sub-section (1) shall be allowed in computingthe total income 19 [of each of the ten previous years beginning with the previousyear in which the industrial undertaking] begins to manufacture or producearticles :20[Provided that such deduction shall not be allowed in computing the totalincome of any of the ten previous years aforesaid in respect of which theindustrial undertaking is not a small-scale industrial undertaking within themeaning of clause (b) of the Explanation below sub-section (8).](4) Where the assessee is a person, other than a company or a co-operativesociety, the deduction under sub-section (1) shall not be admissible unless theaccounts of the small-scale industrial undertaking for the previous year relevantto the assessment year for which the deduction is claimed have been audited byan accountant as defined in the Explanation below sub-section (2) of section 288and the assessee furnishes, along with his return of income, the report of suchaudit in the prescribed form 21 duly signed and verified by such accountant.(5) The provisions of sub-sections (6) and (7) of section 80HH shall, so far as maybe, apply in relation to the computation of the profits and gains of a small-scaleindustrial undertaking for the purposes of the deduction under this section asthey apply in relation to the computation of the profits and gains of an industrialundertaking for the purposes of the deduction under that section.(6) In a case where the assessee is entitled also to the deduction under 22 [section80-I or] section 80J in relation to the profits and gains of a small-scale industrialundertaking to which this section applies, effect shall first be given to theprovisions of this section.(7) Where a deduction in relation to the profits and gains of a small-scaleindustrial undertaking to which section 80HH applies is claimed and allowedunder that section for any assessment year, deduction in relation to such profitsand gains shall not be allowed under this section for the same or any otherassessment year.(8) Nothing contained in this section shall apply in relation to any small-scaleindustrial undertaking engaged in mining.Explanation.—For the purposes of this section,—23[(a) “rural area” means any area other than—(i) an area which is comprised within the jurisdiction of a municipality(whether known as a municipality, municipal corporation,19. Substituted for “in respect of each of the ten assessment years beginning with theassessment year relevant to the previous year in which the small-scale industrialundertaking” by the Finance Act, 1981, w.e.f. 1-4-1981.20. Inserted, ibid.21. See rule 18BB and Form No. 10CC for form of audit report.22. Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1981.23. Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.