India - Income Tax Act 2010 - Saarc

1.445 CH. VIA - DEDUCTIONS IN RESPECT OF CERTAIN INCOMES S. 80-I(i) it is not formed 64 by the splitting up 64 , or the reconstruction 64 , of abusiness already in existence;(ii) it is not formed by the transfer 65 to a new business of machinery orplant previously used for any purpose;(iii) it manufactures or produces 65 any article 65 or thing, not being anyarticle or thing specified in the list in the Eleventh Schedule, oroperates one or more cold storage plant or plants, in any part of India,and begins to manufacture or produce articles or things or to operatesuch plant or plants, at any time within the period of 66 [ten] years nextfollowing the 31st day of March, 1981, or such further period as theCentral Government may, by notification in the Official Gazette,specify with reference to any particular industrial undertaking;(iv) in a case where the industrial undertaking manufactures or producesarticles or things, the undertaking employs ten or more workers in amanufacturing process carried on with the aid of power, or employstwenty or more workers in a manufacturing process carried onwithout the aid of power :Provided that the condition in clause (i) shall not apply in respect of any industrialundertaking which is formed as a result of the re-establishment, reconstructionor revival by the assessee of the business of any such industrial undertaking asis referred to in section 33B, in the circumstances and within the period specifiedin that section :Provided further that the condition in clause (iii) shall, in relation to a small-scaleindustrial undertaking, apply as if the words “not being any article or thingspecified in the list in the Eleventh Schedule” had been omitted.Explanation 1.—For the purposes of clause (ii) of this sub-section, any machineryor plant which was used outside India by any person other than the assessee shallnot be regarded as machinery or plant previously used for any purpose, if thefollowing conditions are fulfilled, namely :—(a) such machinery or plant was not, at any time previous to the date ofthe installation by the assessee, used in India;(b) such machinery or plant is imported into India from any countryoutside India; and(c) no deduction on account of depreciation in respect of such machineryor plant has been allowed or is allowable under the provisions ofthis Act in computing the total income of any person for any periodprior to the date of the installation of the machinery or plant by theassessee.64. For the meaning of the terms/expressions “formed”, “splitting up” and “reconstruction”,see Taxmann’s Direct Taxes Manual, Vol. 3.65. For the meaning of the terms/expressions “transfer”, “manufactures or produces”,“articles” and “workers”, see Taxmann’s Direct Taxes Manual, Vol. 3.66. Substituted for “fourteen” by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991. Earlier“fourteen” was substituted for “nine” by the Finance Act, 1990, w.e.f. 1-4-1990 which wasearlier substituted for “four” by the Finance Act, 1985, w.e.f. 1-4-1985.