Income Tax Act, 2025
Section 1: Ins. by Act 21 of 1998, s. 10 (w.e.f. 11999).
1. Ins. by Act 21 of 1998, s. 10 (w.e.f. 11999).
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(4) Notwithstanding anything contained in sub-section (3), no deduction under sub-section (1) shall
be allowed in respect of any amount 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.
(5) Where any amount standing to the credit of the assessee in the special account or in the Site
Restoration Account is withdrawn on closure of the account during any previous year by the assessee, the
amount so withdrawn from the account, as reduced by the amount, if any, payable to the Central
Government by way of profit or production share as provided in the agreement referred to in section 42,
shall be deemed to be the profits and gains of business or profession of that previous year and shall
accordingly be chargeable to income-tax as the income of that previous year.
Explanation.—Where any amount is withdrawn on closure of the account in a previous year in which
the business carried on by the assessee is no longer in existence, the provisions of this sub-section shall
apply as if the business is in existence in that previous year.
(6) Where any amount standing to the credit of the assessee in the special account or in the Site
Restoration Account is utilised by the assessee for the purposes of any expenditure in connection with
such business in accordance with the scheme 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 or in the Site
Restoration Account, which is released during any previous year by the State Bank of India or which is
withdrawn by the assessee from the Site Restoration Account for being utilised by the assessee for the
purposes of such business in accordance with the scheme 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.
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(8) Where any asset acquired in accordance with the scheme or the deposit scheme is sold or
otherwise transferred in any previous year by the assessee to any person at any time before the expiry of
eight years from the end of the previous year in which it was acquired, such part of the cost of such asset
as is relatable to the deduction allowed under sub-section (1) shall be deemed to be the profits and gains
of business or profession of the previous year in which the asset is sold or otherwise transferred and shall
accordingly be chargeable to income-tax as the income of that previous year:
Notwithstanding anything contained in sub-section
shall
be allowed in respect of any amount utilised for the purchase of—
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.
Where any amount standing to the credit of the assessee in the special account or in the Site
Restoration Account is withdrawn on closure of the account during any previous year by the assessee, the
amount so withdrawn from the account, as reduced by the amount, if any, payable to the Central
Government by way of profit or production share as provided in the agreement referred to in section 42,
shall be deemed to be the profits and gains of business or profession of that previous year and shall
accordingly be chargeable to income-tax as the income of that previous year.
Explanation.—Where any amount is withdrawn on closure of the account in a previous year in which
the business carried on by the assessee is no longer in existence, the provisions of this sub-section shall
apply as if the business is in existence in that previous year.
Where any amount standing to the credit of the assessee in the special account or in the Site
Restoration Account is utilised by the assessee for the purposes of any expenditure in connection with
such business in accordance with the scheme 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 or in the Site
Restoration Account, which is released during any previous year by the State Bank of India or which is
withdrawn by the assessee from the Site Restoration Account for being utilised by the assessee for the
purposes of such business in accordance with the scheme 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.
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Where any asset acquired in accordance with the scheme or the deposit scheme is sold or
otherwise transferred in any previous year by the assessee to any person at any time before the expiry of
eight years from the end of the previous year in which it was acquired, such part of the cost of such asset
as is relatable to the deduction allowed under sub-section
shall be deemed to be the profits and gains
of business or profession of the previous year in which the asset is sold or otherwise transferred and shall
accordingly be chargeable to income-tax as the income of that previous year: