Income Tax Act, 2025
Section 11: Subs. by Act 29 of 2006, s. 5, for “authority” (w.e.f. 12006).
11. Subs. by Act 29 of 2006, s. 5, for “authority” (w.e.f. 12006).
12. Subs. by s. 5, ibid., for “notification issued by the Central Government under clause (ii) or clause (iii) shall, at any one
time, have effect for such assessment year or years, not exceeding three assessment years” (w.e.f. 12006).
186
1[Provided also that where an application under the first proviso is made on or after the date on which
the Taxation Laws (Amendment) Bill, 2006 receives the assent of the President, every notification under
clause (ii) or clause (iii) shall be issued or an order rejecting the application shall be passed within the
period of twelve months from the end of the month in which such application was received by the Central
Government.]
(2) For the purposes of clause (iv) of sub-section (1),—
2[(i) in a case where such capital expenditure is incurred before the 1st day of April, 1967,
one-fifth of the capital expenditure incurred in any previous year shall be deducted for that previous
year; and the balance of the expenditure shall be deducted in equal instalments for each of the four
immediately succeeding previous years;
(ia) in a case where such capital expenditure is incurred after the 31st day of March, 1967, the
whole of such capital expenditure incurred in any previous year shall be deducted for that previous
year:]
3[Provided that no deduction shall be admissible under this clause in respect of any expenditure
incurred on the acquisition of any land, whether the land is acquired as such or as part of any
property, after the 29th day of February, 1984.]
4[Explanation 1].—Where any capital expenditure has been incurred before the commencement
of the business, the aggregate of the expenditure so incurred within the three years immediately
preceding the commencement of the business shall be deemed to have been incurred in the previous
year in which the business is commenced.
3[Explanation 2.—For the purposes of this clause,—
(a) “land” includes any interest in land ; and
(b) the acquisition of any land shall be deemed to have been made by the assessee on the date
on which the instrument of transfer of such land to him has been registered under the Registration
Act, 1908 (16 of 1908), or where he has taken or retained the possession of such land or any part
thereof in part performance of a contract of the nature referred to in section 53A of the Transfer
of Property Act, 1882 (4 of 1882), the date on which he has so taken or retained possession of
such land or part;]
(ii) notwithstanding anything contained in clause (i), where an asset representing expenditure of a
capital nature 5[incurred before the 1st day of April, 1967], ceases to be used in a previous year for
scientific research related to the business and the value of the asset at the time of the cessation,
together with the aggregate of deductions already allowed under clause (i) falls short of the said
expenditure, then—
(a) there shall be allowed a deduction for that previous year of an amount equal to such
deficiency, and
or clause
shall, at any one
time, have effect for such assessment year or years, not exceeding three assessment years” (w.e.f. 12006).
186
1[Provided also that where an application under the first proviso is made on or after the date on which
the Taxation Laws
Bill, 2006 receives the assent of the President, every notification under
clause
or clause
shall be issued or an order rejecting the application shall be passed within the
period of twelve months from the end of the month in which such application was received by the Central
Government.]
For the purposes of clause
of sub-section
in a case where such capital expenditure is incurred before the 1st day of April, 1967,
one-fifth of the capital expenditure incurred in any previous year shall be deducted for that previous
year; and the balance of the expenditure shall be deducted in equal instalments for each of the four
immediately succeeding previous years;
in a case where such capital expenditure is incurred after the 31st day of March, 1967, the
whole of such capital expenditure incurred in any previous year shall be deducted for that previous
year:]
3[Provided that no deduction shall be admissible under this clause in respect of any expenditure
incurred on the acquisition of any land, whether the land is acquired as such or as part of any
property, after the 29th day of February, 1984.]
4[Explanation 1].—Where any capital expenditure has been incurred before the commencement
of the business, the aggregate of the expenditure so incurred within the three years immediately
preceding the commencement of the business shall be deemed to have been incurred in the previous
year in which the business is commenced.
3[Explanation 2.—For the purposes of this clause,—
“land” includes any interest in land ; and
the acquisition of any land shall be deemed to have been made by the assessee on the date
on which the instrument of transfer of such land to him has been registered under the Registration
Act, 1908 (16 of 1908), or where he has taken or retained the possession of such land or any part
thereof in part performance of a contract of the nature referred to in section 53A of the Transfer
of Property Act, 1882 (4 of 1882), the date on which he has so taken or retained possession of
such land or part;]
notwithstanding anything contained in clause
falls short of the said
expenditure, then—
there shall be allowed a deduction for that previous year of an amount equal to such
deficiency, and