India - Income Tax Act 2010 - Saarc

S. 80HHB I.T. ACT, 1961 1.422(ii) an amount equal to 36 [such percentage of the profits and gains as isreferred to in sub-section (1) in relation to the relevant assessmentyear] is debited to the profit and loss account of the previous year inrespect of which the deduction under this section is to be allowed andcredited to a reserve account (to be called the “Foreign ProjectsReserve Account”) to be utilised by the assessee during a period of fiveyears next following for the purposes of his business other than fordistribution by way of dividends or profits ;(iii) an amount equal to 37 [such percentage of the profits and gains as isreferred to in sub-section (1) in relation to the relevant assessmentyear] is brought by the assessee in convertible foreign exchange intoIndia, in accordance with the provisions of the Foreign ExchangeRegulation Act, 1973 (46 of 1973), and any rules made thereunder,within a period of six months from the end of the previous yearreferred to in clause (ii) or, 38 [within such further period as thecompetent authority may allow in this behalf] :Provided that where the amount credited by the assessee to the Foreign ProjectsReserve Account in pursuance of clause (ii) or the amount brought into India bythe assessee in pursuance of clause (iii) or each of the said amounts is less than39[such percentage of the profits and gains as is referred to in sub-section (1) inrelation to the relevant assessment year], the deduction under that sub-sectionshall be limited to the amount so credited in pursuance of clause (ii) or theamount so brought into India in pursuance of clause (iii), whichever is less.40[Explanation.—For the purposes of clause (iii), the expression “competentauthority” means the Reserve Bank of India or such other authority as isauthorised under any law for the time being in force for regulating payments anddealings in foreign exchange.](4) If at any time before the expiry of five years from the end of the previous yearin which the deduction under sub-section (1) is allowed, the assessee utilises theamount credited to the Foreign Projects Reserve Account for distribution by wayof dividends or profits or for any other purpose which is not a purpose of the36. Substituted for “fifty per cent of the profits and gains referred to in sub-section (1)” by theFinance Act, 2000, w.e.f. 1-4-2001. Earlier the quoted portion was amended by the Incometax(Amendment) Act, 1986, w.e.f. 1-4-1987.37. Substituted for “fifty per cent of the profits and gains referred to in sub-section (1)” by theFinance Act, 2000, w.e.f. 1-4-2001. Earlier the quoted portion was amended by the Incometax(Amendment) Act, 1986, w.e.f. 1-4-1987.38. Substituted for the portion beginning with the words “where the Chief Commissioner” andending with the words “may allow in this behalf” by the Finance Act, 1999, w.e.f. 1-6-1999.Prior to its substitution, the said portion, as amended by the Direct Tax Laws (Amendment)Act, 1987, w.e.f. 1-4-1988, read as under :“where the Chief Commissioner or Commissioner is satisfied (for reasons to be recordedin writing) that the assessee is, for reasons beyond his control, unable to do so within thesaid period of six months, within such further period as the Chief Commissioner orCommissioner may allow in this behalf :”39. Substituted for “fifty per cent of the profits and gains referred to in sub-section (1)” by theFinance Act, 2000, w.e.f. 1-4-2001. Earlier the quoted portion was amended by the Incometax(Amendment) Act, 1986, w.e.f. 1-4-1987.40. Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.