India - Income Tax Act 2010 - Saarc

1.423 CH. VIA - DEDUCTIONS IN RESPECT OF CERTAIN INCOMES S. 80HHBAbusiness of the assessee, the deduction originally allowed under sub-section (1)shall be deemed to have been wrongly allowed, and the 41 [Assessing] Officer may,notwithstanding anything contained in this Act, recompute the total income ofthe assessee for the relevant previous year and make the necessary amendment;and the provisions of section 154 shall, so far as may be, apply thereto, the periodof four years specified in sub-section (7) of that section being reckoned from theend of the previous year in which the money was so utilised.(5) Notwithstanding anything contained in any other provision of this Chapterunder the heading “C.—Deductions in respect of certain incomes”, no part of theconsideration or of the income comprised in the consideration payable to theassessee for the execution of a foreign project referred to in clause (a) of subsection(1) or of any work referred to in clause (b) of that sub-section shall qualifyfor deduction for any assessment year 42 under any such other provision.]43[Deduction in respect of profits and gains from housing projects in certain cases.80HHBA. (1) Where the gross total income of an assessee being an Indiancompany or a person (other than a company) who is a resident inIndia includes any profits and gains derived from the execution of a housingproject awarded to the assessee on the basis of global tender and such project isaided by the World Bank, there shall, in accordance with and subject to theprovisions of this section, be allowed, in computing the total income of theassessee, 44 [a deduction from such profits and gains of an amount equal to—(i) forty per cent thereof for an assessment year beginning on the 1st dayof April, 2001;(ii) thirty per cent thereof for an assessment year beginning on the 1st dayof April, 2002;(iii) twenty per cent thereof for an assessment year beginning on the 1stday of April, 2003;(iv) ten per cent thereof for an assessment year beginning on the 1st dayof April, 2004,and no deduction shall be allowed in respect of the assessment year beginningon the 1st day of April, 2005 and any subsequent assessment year].(2) The deductions under this section shall be allowed only if the followingconditions are fulfilled, namely :—(i) the assessee maintains separate accounts in respect of the profits andgains derived from the business of the execution of the housingproject undertaken by him and, where the assessee is a person otherthan an Indian company or a co-operative society, such accountshave been audited by an accountant as defined in the Explanation41. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.42. For the meaning of the expression “any assessment year”, see Taxmann’s Direct TaxesManual, Vol. 3.43. Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999.44. Substituted for “a deduction from such profits and gains of an amount equal to fifty percent thereof” by the Finance Act, 2000, w.e.f. 1-4-2001.