Income Tax Act, 1961
Section 7: The words “within the previous year” omitted by s. 7, ibid. (w.e.f 11987).
7. The words “within the previous year” omitted by s. 7, ibid. (w.e.f 11987).
165
Provided that nothing in this sub-section shall apply—
(i) where the asset is sold or otherwise transferred by the assessee to Government, a local
authority, a corporation established by or under a Central, State or Provincial Act or a Government
company as defined in section 617 of the Companies Act, 1956 (1 of 1956); or
(ii) where the sale or transfer of the asset is made in connection with the succession of a firm by a
company in the business or profession carried on by the firm as a result of which the firm sells or
otherwise transfers to the company any asset and the scheme continues to apply to the company in the
manner applicable to the firm.
Explanation.—The provisions of clause (ii) of the proviso shall apply only where—
(i) all the properties of the firm relating to the business or profession immediately before the
succession become the properties of the company;
(ii) all the liabilities of the firm relating to the business or profession immediately before the
succession become the liabilities of the company; and
(iii) all the shareholders of the company were partners of the firm immediately before the
succession.
(8) The Central Government may, if it considers it necessary or expedient so to do, by notification in
the Official Gazette, omit any article or thing from the list of articles or things specified in the Eleventh
Schedule.
(9) The Central Government may, after making such inquiry as it may think fit, direct, by notification
in the Official Gazette, that the provisions of this section shall not apply to any class of assessees, with
effect from such date as it may specify in the notification.
1[(10) Where a deduction has been allowed to an assessee under this section in any assessment year,
no deduction shall be allowed to the assessee under sub-section (1) of section 32A in the said assessment
year (hereinafter referred to as the initial assessment year) and a block of further period of four years
beginning with the assessment year immediately succeeding the initial assessment year.]
Explanation.—In this section,—
(a) “computers” does not include calculating machines and calculating devices;
(b) “Development Bank” means—
(i) in the case of an assessee carrying on business of growing and manufacturing tea in
India, the National Bank for Agriculture and Rural Development established under section 3 of
the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981);
(ii) in the case of other assessees, the Industrial Development Bank of India established
under the Industrial Development Bank of India Act, 1964 (18 of 1964) and includes such bank
or institution as may be specified in the scheme in this behalf.
where the asset is sold or otherwise transferred by the assessee to Government, a local
authority, a corporation established by or under a Central, State or Provincial Act or a Government
company as defined in section 617 of the Companies Act, 1956 (1 of 1956); or
where the sale or transfer of the asset is made in connection with the succession of a firm by a
company in the business or profession carried on by the firm as a result of which the firm sells or
otherwise transfers to the company any asset and the scheme continues to apply to the company in the
manner applicable to the firm.
Explanation.—The provisions of clause
of the proviso shall apply only where—
all the properties of the firm relating to the business or profession immediately before the
succession become the properties of the company;
all the liabilities of the firm relating to the business or profession immediately before the
succession become the liabilities of the company; and
all the shareholders of the company were partners of the firm immediately before the
succession.
The Central Government may, if it considers it necessary or expedient so to do, by notification in
the Official Gazette, omit any article or thing from the list of articles or things specified in the Eleventh
Schedule.
The Central Government may, after making such inquiry as it may think fit, direct, by notification
in the Official Gazette, that the provisions of this section shall not apply to any class of assessees, with
effect from such date as it may specify in the notification.
1[
Where a deduction has been allowed to an assessee under this section in any assessment year,
no deduction shall be allowed to the assessee under sub-section
of section 32A in the said assessment
year (hereinafter referred to as the initial assessment year) and a block of further period of four years
beginning with the assessment year immediately succeeding the initial assessment year.]
Explanation.—In this section,—
“computers” does not include calculating machines and calculating devices;
“Development Bank” means—
in the case of an assessee carrying on business of growing and manufacturing tea in
India, the National Bank for Agriculture and Rural Development established under section 3 of
the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981);
in the case of other assessees, the Industrial Development Bank of India established
under the Industrial Development Bank of India Act, 1964 (18 of 1964) and includes such bank
or institution as may be specified in the scheme in this behalf.