India - Income Tax Act 2010 - Saarc

S. 80-IB I.T. ACT, 1961 1.466Explanation.—For the purposes of this section, “Developer” and “Special EconomicZone” shall have the same meanings respectively as assigned to them inclauses (g) and (za) of section 2 of the Special Economic Zones Act, 2005 35 .]Deduction in respect of profits and gains from certain industrial undertakingsother than infrastructure development undertakings. 3680-IB. (1) Where the gross total income of an assessee includes any profitsand gains derived from any business referred to in sub-sections (3) to37[(11), (11A) and (11B) 38 ] (such business being hereinafter referred to as theeligible business), there shall, in accordance with and subject to the provisions ofthis section, be allowed, in computing the total income of the assessee, adeduction from such profits and gains of an amount equal to such percentageand for such number of assessment years as specified in this section.(2) This section applies to any industrial undertaking which fulfils all thefollowing conditions, namely :—(i) it is not formed 39 by splitting up 39 , or the reconstruction 39 , of a businessalready in existence :Provided that this condition shall not apply in respect of an industrialundertaking which is formed as a result of the re-establishment,reconstruction or revival by the assessee of the business of any suchindustrial undertaking as is referred to in section 33B, in the circumstancesand within the period specified in that section;(ii) it is not formed by the transfer to a new business of machinery or plantpreviously used for any purpose;(iii) it manufactures or produces any article or thing, not being any articleor thing specified in the list in the Eleventh Schedule, or operates oneor more cold storage plant or plants, in any part of India :Provided that the condition in this clause shall, in relation to a smallscale industrial undertaking or an industrial undertaking referred toin sub-section (4) shall apply as if the words “not being any article orthing specified in the list in the Eleventh Schedule” had been omitted.Explanation 1.—For the purposes of clause (ii), any machinery orplant which was used outside India by any person other than theassessee shall not be regarded as machinery or plant previously usedfor any purpose, if the following conditions are fulfilled, namely :—(a) such machinery or plant was not, at any time previous to the dateof the installation by the assessee, used in India;(b) such machinery or plant is imported into India from any countryoutside India; and35. For text of section 2(g) and (za) of Special Economic Zones Act, 2005, see Appendix.36. See also Instruction No. 4/2009, dated 30-6-2009. For details, see Taxmann’s Master Guideto Income-tax Act.37. Substituted for “(11) and (11A)” by the Finance (No. 2) Act, 2004, w.e.f. 1-4-2005. Earlier“and (11A)” was inserted by the Finance Act, 2001, w.e.f. 1-4-2002.38. Mention of ‘sub-section (11C)’, as inserted with effect from 1-4-2009, should also beincorporated in sub-section (1).39. For the meaning of the terms/expressions “formed”, “splitting up” and “reconstruction”,see Taxmann’s Direct Taxes Manual, Vol. 3.