Income Tax Act, 2025
Section 1: Subs. by Act 20 of 1967, s. 10, for sub-section (5) (w.e.f. 11967).
1. Subs. by Act 20 of 1967, s. 10, for sub-section (5) (w.e.f. 11967).
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(6) Where a firm is succeeded to by a company in the business carried on by it as a result of which
the firm sells or otherwise transfers to the company any land on which development allowance has been
allowed, the provisions of clauses (a) and (b) of sub-section (5) shall, so far as may be, apply to the firm
and the company.
Explanation.—The provisions of this sub-section shall apply if the conditions laid down in
the Explanation to sub-section (4) of section 33 are fulfilled.
(7) For the purposes of this section, “actual cost of planting” means the aggregate of—
(i) the cost of preparing the land;
(ii) the cost of seeds, cutting and nurseries;
(iii) the cost of planting and replanting; and
(iv) the cost of upkeep thereof for the previous year in which the land has been prepared and the
three successive previous years next following such previous year,
reduced by that portion of the cost, if any, as has been met directly or indirectly by any other person or
authority:
1[Provided that where such cost exceeds—
(i) forty thousand rupees per hectare in respect of land situate in a hilly area comprised in the
district of Darjeeling; or
(ii) thirty-five thousand rupees per hectare in respect of land situate in a hilly area comprised in
an area other than the district of Darjeeling; or
(iii) thirty thousand rupees per hectare in any other area,
then, the excess shall be ignored.
Explanation.—For the purposes of this proviso, “district of Darjeeling” means the district of
Darjeeling as on the 28th day of February, 1981, being the date of introduction of the Finance Bill, 1981,
in the House of the People.]
(8) The Board may, having regard to the elevation and topography, by general or special order,
declare any areas to be hilly areas for the purposes of this section and such order shall not be questioned
before any court of law or any other authority.
2[Explanation.—For the purposes of this section, an assessee having a leasehold or other right of
occupancy in any land shall be deemed to own such land and where the assessee transfers such right, he
shall be deemed to have sold or otherwise transferred such land.]
(w.e.f. 11967).
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Where a firm is succeeded to by a company in the business carried on by it as a result of which
the firm sells or otherwise transfers to the company any land on which development allowance has been
allowed, the provisions of clauses
and
of sub-section
shall, so far as may be, apply to the firm
and the company.
Explanation.—The provisions of this sub-section shall apply if the conditions laid down in
the Explanation to sub-section
of section 33 are fulfilled.
For the purposes of this section, “actual cost of planting” means the aggregate of—
the cost of preparing the land;
the cost of seeds, cutting and nurseries;
the cost of planting and replanting; and
the cost of upkeep thereof for the previous year in which the land has been prepared and the
three successive previous years next following such previous year,
reduced by that portion of the cost, if any, as has been met directly or indirectly by any other person or
authority:
1[Provided that where such cost exceeds—
forty thousand rupees per hectare in respect of land situate in a hilly area comprised in the
district of Darjeeling; or
thirty-five thousand rupees per hectare in respect of land situate in a hilly area comprised in
an area other than the district of Darjeeling; or
thirty thousand rupees per hectare in any other area,
then, the excess shall be ignored.
Explanation.—For the purposes of this proviso, “district of Darjeeling” means the district of
Darjeeling as on the 28th day of February, 1981, being the date of introduction of the Finance Bill, 1981,
in the House of the People.]
The Board may, having regard to the elevation and topography, by general or special order,
declare any areas to be hilly areas for the purposes of this section and such order shall not be questioned
before any court of law or any other authority.
2[Explanation.—For the purposes of this section, an assessee having a leasehold or other right of
occupancy in any land shall be deemed to own such land and where the assessee transfers such right, he
shall be deemed to have sold or otherwise transferred such land.]