India - Income Tax Act 2010 - Saarc

S. 80-I I.T. ACT, 1961 1.448of the hotel 74 [or the business of repairs to ocean-going vessels or other poweredcraft] were the only source of income of the assessee during the previous yearsrelevant to the initial assessment year and to every subsequent assessment yearup to and including the assessment year for which the determination is to bemade.(7) Where the assessee is a person other than a company or a co-operative society,the deduction under sub-section (1) from profits and gains derived from anindustrial undertaking shall not be admissible unless the accounts of theindustrial undertaking for the previous year relevant to the assessment yearfor which the deduction is claimed have been audited by an accountant, asdefined in the Explanation below sub-section (2) of section 288, and the assesseefurnishes, along with his return of income, the report of such audit in theprescribed form 75 duly signed and verified by such accountant.(8) Where any goods held for the purposes of the business of the industrialundertaking or the hotel or the operation of the ship 76 [or the business of repairsto ocean-going vessels or other powered craft] are transferred to any otherbusiness carried on by the assessee, or where any goods held for the purposes ofany other business carried on by the assessee are transferred to the business ofthe industrial undertaking or the hotel or the operation of the ship 76 [or thebusiness of repairs to ocean-going vessels or other powered craft] and, in eithercase, the consideration, if any, for such transfer as recorded in the accounts ofthe business of the industrial undertaking or the hotel or the operation of the ship76[or the business of repairs to ocean-going vessels or other powered craft] doesnot correspond to the market value of such goods as on the date of the transfer,then, for the purposes of the deduction under this section, the profits and gainsof the industrial undertaking or the business of the hotel or the operation of theship 76 [or the business of repairs to ocean-going vessels or other powered craft]shall be computed as if the transfer, in either case, had been made at the marketvalue of such goods as on that date :Provided that where, in the opinion of the 77 [Assessing] Officer, the computationof the profits and gains of the industrial undertaking or the business of the hotelor the operation of the ship 76 [or the business of repairs to ocean-going vessels orother powered craft] in the manner hereinbefore specified presents exceptionaldifficulties, the 77 [Assessing] Officer may compute such profits and gains on suchreasonable basis as he may deem fit.Explanation.—In this sub-section, “market value”, in relation to any goods,means the price that such goods would ordinarily fetch on sale in the openmarket.(9) Where it appears to the 77 [Assessing] Officer that, owing to the closeconnection between the assessee carrying on the business of the industrialundertaking or the hotel or the operation of the ship 76 [or the business of repairsto ocean-going vessels or other powered craft] to which this section applies and74. Inserted by the Finance Act, 1983, w.e.f. 1-4-1984.75. See rule 18BBB and Form No. 10CCB for form of audit report.76. Inserted by the Finance Act, 1983, w.e.f. 1-4-1984.77. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.