India - Income Tax Act 2010 - Saarc

1.693 CH. XIV - PROCEDURE FOR ASSESSMENT S. 155transferred 22 by the assessee to any person other than the Government,a local authority, a corporation established by a Central, Stateor Provincial Act or a 23 Government company as defined in section617 of the Companies Act, 1956 (1 of 1956), or in connection with anyamalgamation or succession referred to in sub-section (3) or subsection(4) of section 33 ; or(ii) at any time before the expiry of the eight years referred to in subsection(3) of section 34, the assessee utilises the amount credited tothe reserve account under clause (a) of that sub-section—(a) for distribution by way of dividends or profits ; or(b) for remittance outside India as profits or for the creation of anyasset outside India ; or(c) for any other purpose which is not a purpose of the business of theundertaking,the development rebate originally allowed shall be deemed to have beenwrongly allowed, and the 24 [Assessing] Officer may, notwithstanding anythingcontained in this Act, recompute the total income of the assessee for the relevantprevious year and make the necessary amendment; and the provisions ofsection 154 shall, so far as may be, apply thereto, the period of four years specifiedin sub-section (7) of that section being reckoned from the end of the previousyear in which the sale or transfer took place or the money was so utilised.25[(5A) Where an allowance by way of development allowance has been madewholly or partly to an assessee in respect of the cost of planting in any area in anyassessment year under section 33A and subsequently—(i) at any time before the expiry of eight years from the end of theprevious year in which such allowance was made, the land is sold orotherwise transferred by the assessee to any person other than theGovernment, a local authority, a corporation established by a Central,State or Provincial Act or a Government company 26 as defined insection 617 of the Companies Act, 1956 (1 of 1956), or in connectionwith any amalgamation or succession referred to in sub-section (5) orsub-section (6) of section 33A ; or(ii) at any time before the expiry of the eight years referred to in subsection(3) of section 33A, the assessee utilises the amount credited tothe reserve account under clause (ii) of that sub-section—(a) for distribution by way of dividends or profits ; or(b) for remittance outside India as profits or for the creation of anyasset outside India ; or22. For the meaning of the expression “otherwise transferred”, see Taxmann’s Direct TaxesManual, Vol. 3.23. For definition of “Government company”, see footnote 71 on p. 1.23 ante.24. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.25. Inserted by the Finance Act, 1965, w.e.f. 1-4-1965.26. For definition of “Government company”, see footnote 71 on p. 1.23 ante.