Income Tax Act, 2025
Section 1: Ins. by Act 14 of 2001, s. 8 (w.e.f. 11994).
1. Ins. by Act 14 of 2001, s. 8 (w.e.f. 11994).
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1[10C. Special provision in respect of certain industrial undertakings in North-Eastern
Region.—(1) Subject to the provisions of this section, any profits and gains derived by an assessee from
an industrial undertaking, which has begun or begins to manufacture or produce any article or thing on or
after the 1st day of April, 1998 in any Integrated Infrastructure Development Centre or Industrial Growth
Centre located in the North-Eastern Region (hereafter in this section referred to as the industrial
undertaking) shall not be included in the total income of the assessee.
(2) This section applies to any industrial undertaking which fulfils all the following conditions,
namely:—
(i) it is not formed by the splitting up, or the reconstruction of, a business already in existence:
Provided that this condition shall not apply in respect of any industrial undertaking which is
formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of
any such industrial undertaking as is referred to in section 33B, in the circumstances and within the
period specified in that section;
(ii) it is not formed by the transfer to a new business of machinery or plant previously used for
any purpose.
Explanation.—The provisions of Explanation 1 and Explanation 2 to sub-section (3) of
section 80-IA shall apply for the purposes of clause (ii) of this sub-section as they apply for the purposes
of clause (ii) of that sub-section.
(3) The profits and gains referred to in sub-section (1) shall not be included in the total income of the
assessee in respect of ten consecutive assessment years beginning with the assessment year relevant to the
previous year in which the industrial undertaking begins to manufacture or produce articles or things.
(4) Notwithstanding anything contained in any other provision of this Act, in computing the total
income of the assessee of any previous year relevant to any subsequent assessment year,—
(i) section 32, section 35 and clause (ix) of sub-section (1) of section 36 shall apply as if
deduction referred to therein and relating to or allowable for any of the relevant assessment years, in
relation to any building, machinery, plant or furniture used for the purposes of the business of the
industrial undertaking in the previous year relevant to such assessment year or any expenditure
incurred for the purposes of such business in such previous year had been given full effect to for that
assessment year itself and, accordingly, sub-section (2) of section 32, sub-section (4) of section 35 or
the second proviso to clause (ix) of sub-section (1) of section 36, as the case may be, shall not apply
in relation to any such deduction;
(ii) no loss referred to in sub-section (1) of section 72 or sub-section (1) or sub-section (3)
of section 74, in so far as such loss relates to the business of the industrial undertaking, shall be
carried forward or set off where such loss relates to any of the relevant assessment years;
(iii) no deduction shall be allowed under section 80HH or section 80HHA or
section 80-I or section 80-IA or section 80-IB or section 80JJA in relation to the profits and gains of
the industrial undertakings; and
(iv) in computing the depreciation allowance under section 32, the written down value of any
asset used for the purposes of the business of the industrial undertaking shall be computed as if the
assessee had claimed and been actually allowed the deduction in respect of depreciation for each of
the relevant assessment years.
(5) The provisions of sub-section (8) and sub-section (10) of section 80-IA shall, so far as may be,
apply in relation to the industrial undertaking referred to in this section as they apply for the purposes of
the industrial undertaking referred to in section 80-IA or section 80IB, as the case may be.
Subject to the provisions of this section, any profits and gains derived by an assessee from
an industrial undertaking, which has begun or begins to manufacture or produce any article or thing on or
after the 1st day of April, 1998 in any Integrated Infrastructure Development Centre or Industrial Growth
Centre located in the North-Eastern Region (hereafter in this section referred to as the industrial
undertaking) shall not be included in the total income of the assessee.
This section applies to any industrial undertaking which fulfils all the following conditions,
namely:—
it is not formed by the splitting up, or the reconstruction of, a business already in existence:
Provided that this condition shall not apply in respect of any industrial undertaking which is
formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of
any such industrial undertaking as is referred to in section 33B, in the circumstances and within the
period specified in that section;
it is not formed by the transfer to a new business of machinery or plant previously used for
any purpose.
Explanation.—The provisions of Explanation 1 and Explanation 2 to sub-section
of
section 80-IA shall apply for the purposes of clause
of this sub-section as they apply for the purposes
of clause
of that sub-section.
The profits and gains referred to in sub-section
shall not be included in the total income of the
assessee in respect of ten consecutive assessment years beginning with the assessment year relevant to the
previous year in which the industrial undertaking begins to manufacture or produce articles or things.
Notwithstanding anything contained in any other provision of this Act, in computing the total
income of the assessee of any previous year relevant to any subsequent assessment year,—
section 32, section 35 and clause
of sub-section
of section 36 shall apply as if
deduction referred to therein and relating to or allowable for any of the relevant assessment years, in
relation to any building, machinery, plant or furniture used for the purposes of the business of the
industrial undertaking in the previous year relevant to such assessment year or any expenditure
incurred for the purposes of such business in such previous year had been given full effect to for that
assessment year itself and, accordingly, sub-section
of section 32, sub-section
of section 35 or
the second proviso to clause
of sub-section
of section 36, as the case may be, shall not apply
in relation to any such deduction;
no loss referred to in sub-section
of section 72 or sub-section
or sub-section
of section 74, in so far as such loss relates to the business of the industrial undertaking, shall be
carried forward or set off where such loss relates to any of the relevant assessment years;
no deduction shall be allowed under section 80HH or section 80HHA or
section 80-I or section 80-IA or section 80-IB or section 80JJA in relation to the profits and gains of
the industrial undertakings; and
in computing the depreciation allowance under section 32, the written down value of any
asset used for the purposes of the business of the industrial undertaking shall be computed as if the
assessee had claimed and been actually allowed the deduction in respect of depreciation for each of
the relevant assessment years.
The provisions of sub-section
and sub-section
of section 80-IA shall, so far as may be,
apply in relation to the industrial undertaking referred to in this section as they apply for the purposes of
the industrial undertaking referred to in section 80-IA or section 80IB, as the case may be.