Income Tax Act, 2025
Section 10: Subs. by Act 32 of 2003, s. 16, for “Tea Deposit Account” (w.e.f. 12004).
10. Subs. by Act 32 of 2003, s. 16, for “Tea Deposit Account” (w.e.f. 12004).
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(3) Any amount standing to the credit of the assessee in 1[the special account or the 2[Deposit
Account] shall not be allowed to be withdrawn except for the purposes specified in the scheme or, as the
case may be, in the deposit scheme] or in the circumstances specified below:—
(a) closure of business;
(b) death of an assessee;
(c) partition of a Hindu undivided family;
(d) dissolution of a firm;
(e) liquidation of a company.
3[(4) Notwithstanding anything contained in sub-section (3), where any amount standing to the credit
of the assessee in the special account or in the Deposit Account is released during any previous year by
the National Bank or withdrawn by the assessee from the Deposit Account, and such amount is utilised
for the purchase of—
(a) any machinery or plant to be installed in any office premises or residential accommodation,
including any accommodation in the nature of a guest-house;
(b) any office appliances (not being computers);
(c) any machinery or plant, the whole of the actual cost of which is allowed as a deduction
(whether by way of depreciation or otherwise) in computing the income chargeable under the head
“Profits and gains of business or profession” of any one previous year;
(d) any new machinery or plant to be installed in an industrial undertaking for the purposes of
business of construction, manufacture or production of any article or thing specified in the list in the
Eleventh Schedule,
the whole of such amount so utilised shall be deemed to be the profits and gains of business of that
previous year and shall accordingly be chargeable to income-tax as the income of that previous year.]
(5) Where any amount, standing to the credit of the assessee in the special account 4[or in the
2[Deposit Account]], is withdrawn during any previous year by the assessee in the circumstance specified
in clause (a) or clause (d) of sub-section (3), the whole of such amount shall be deemed to be the profits
and gains of business or profession of that previous year and shall accordingly be chargeable to incometax as the income of that previous year, as if the business had not closed or, as the case may be, the firm
had not been dissolved.
(6) Where any amount standing to the credit of the assessee in the special account 4[or in the
2[Deposit Account]] is utilised by the assessee for the purposes of any expenditure in connection with
such business in accordance with the scheme 4[or the deposit scheme], such expenditure shall not be
allowed in computing the income chargeable under the head “Profits and gains of business or profession.
(7) Where any amount, standing to the credit of the assessee in the special account 4[or in the
2[Deposit Account]], which is released during any previous year by the National Bank 4[or which is
withdrawn by the assessee from the 2[Deposit Account]]for being utilised by the assessee for the purposes
of such business in accordance with the scheme 4[or the deposit scheme] is not so utilised, either wholly
or in part, within that previous year, the whole of such amount or, as the case may be, part thereof which
is not so utilised shall be deemed to be profits and gains of business and accordingly chargeable to
income-tax as the income of that previous year:
1. Subs. by Act 32 of 1994, s. 12, for “the special account shall not be allowed to be withdrawn except for the purposes
specified in the scheme” (w.e.f. 11995).
Any amount standing to the credit of the assessee in 1[the special account or the 2[Deposit
Account] shall not be allowed to be withdrawn except for the purposes specified in the scheme or, as the
case may be, in the deposit scheme] or in the circumstances specified below:—
closure of business;
death of an assessee;
partition of a Hindu undivided family;
dissolution of a firm;
liquidation of a company.
3[
Notwithstanding anything contained in sub-section
any machinery or plant to be installed in any office premises or residential accommodation,
including any accommodation in the nature of a guest-house;
any office appliances (not being computers);
any machinery or plant, the whole of the actual cost of which is allowed as a deduction
(whether by way of depreciation or otherwise) in computing the income chargeable under the head
“Profits and gains of business or profession” of any one previous year;
any new machinery or plant to be installed in an industrial undertaking for the purposes of
business of construction, manufacture or production of any article or thing specified in the list in the
Eleventh Schedule,
the whole of such amount so utilised shall be deemed to be the profits and gains of business of that
previous year and shall accordingly be chargeable to income-tax as the income of that previous year.]
Where any amount, standing to the credit of the assessee in the special account 4[or in the
2[Deposit Account]], is withdrawn during any previous year by the assessee in the circumstance specified
in clause
or clause
of sub-section
Where any amount standing to the credit of the assessee in the special account 4[or in the
2[Deposit Account]] is utilised by the assessee for the purposes of any expenditure in connection with
such business in accordance with the scheme 4[or the deposit scheme], such expenditure shall not be
allowed in computing the income chargeable under the head “Profits and gains of business or profession.
Where any amount, standing to the credit of the assessee in the special account 4[or in the
2[Deposit Account]], which is released during any previous year by the National Bank 4[or which is
withdrawn by the assessee from the 2[Deposit Account]]for being utilised by the assessee for the purposes
of such business in accordance with the scheme 4[or the deposit scheme] is not so utilised, either wholly
or in part, within that previous year, the whole of such amount or, as the case may be, part thereof which
is not so utilised shall be deemed to be profits and gains of business and accordingly chargeable to
income-tax as the income of that previous year:
1. Subs. by Act 32 of 1994, s. 12, for “the special account shall not be allowed to be withdrawn except for the purposes
specified in the scheme” (w.e.f. 11995).