Income Tax Act, 2025
Section 5: Ins. by Act 49 of 1991, s. 31 (w.e.f. 11991).
5. Ins. by Act 49 of 1991, s. 31 (w.e.f. 11991).
6. Subs. by, s. 31, ibid., for “fourteen years” (w.e.f. 11991). Earlier “fourteen years” was subs. for “nine years” by
Act 12 of 1990 s. 24 (w.e.f. 11990) which was earlier subs. for “four years” by Act 32 of 1985, s. 20 (w.e.f. 11985).
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Provided further that the condition in clause (iii) shall, in relation to a small-scale industrial
undertaking, apply as if the words “not being any article or thing specified in the list in the Eleventh
Schedule” had been omitted.
Explanation 1.—For the purposes of clause (ii) of this sub-section, any machinery or plant which was
used outside India by any person other than the assessee shall not be regarded as machinery or plant
previously used for any purpose, if the following conditions are fulfilled, namely:—
(a) such machinery or plant was not, at any time previous to the date of the installation by the
assessee, used in India;
(b) such machinery or plant is imported into India from any country outside India; and
(c) no deduction on account of depreciation in respect of such machinery or plant has been
allowed or is allowable under the provisions of this Act in computing the total income of any person
for any period prior to the date of the installation of the machinery or plant by the assessee.
Explanation 2.—Where in the case of an industrial undertaking, any machinery or plant or any part
thereof previously used for any purpose is transferred to a new business and the total value of the
machinery or plant or part so transferred does not exceed twenty per cent of the total value of the
machinery or plant used in the business, then, for the purposes of clause (ii) of this sub-section, the
condition specified therein shall be deemed to have been complied with.
Explanation 3.—For the purposes of this sub-section, “small-scale industrial undertaking” shall have
the same meaning as in clause (b) of the Explanation below sub-section (8) of section 80HHA.
(3) This section applies to any ship, where all the following conditions are fulfilled, namely:—
(i) it is owned by an Indian company and is wholly used for the purposes of the business carried
on by it;
(ii) it was not, previous to the date of its acquisition by the Indian company, owned or used in
Indian territorial waters by a person resident in India; and
(iii) it is brought into use by the Indian company at any time within the period of 1[ten years] next
following the 1st day of April, 1981.
(4) This section applies to the business of any hotel, where all the following conditions are fulfilled,
namely:—
(i) the business of the hotel is not formed by the splitting up, or the reconstruction, of a business
already in existence or by the transfer to a new business of a building previously used as a hotel or of
any machinery or plant previously used for any purpose;
(ii) the business of the hotel is owned and carried on by a company registered in India with a
paid-up capital of not less than five hundred thousand rupees;
(iii) the hotel is for the time being approved for the purposes of this sub-section by the Central
Government;
(iv) the business of the hotel starts functioning after the 31st day of March, 1981, but 2[before the
1st day of April, 3[1991]].
1. Subs. by 49 of 1991, s. 31, for “fourteen years” (w.e.f. 11991). Earlier “fourteen years” was subs. for “nine years” by
Act 12 of 1990 s. 24 (w.e.f. 11990) which was earlier substituted for “four years” by Act 32 of 1985,
s. 20 (w.e.f. 11985).
2. Subs. by Act 12 of 1990, s. 24, for “before the first day of April, 1990” (w.e.f. 11990). Earlier “1990” was substituted
for “1985” by 32 of 1985, s. 20 (w.e.f. 11985).
shall, in relation to a small-scale industrial
undertaking, apply as if the words “not being any article or thing specified in the list in the Eleventh
Schedule” had been omitted.
Explanation 1.—For the purposes of clause
of this sub-section, any machinery or plant which was
used outside India by any person other than the assessee shall not be regarded as machinery or plant
previously used for any purpose, if the following conditions are fulfilled, namely:—
such machinery or plant was not, at any time previous to the date of the installation by the
assessee, used in India;
such machinery or plant is imported into India from any country outside India; and
no deduction on account of depreciation in respect of such machinery or plant has been
allowed or is allowable under the provisions of this Act in computing the total income of any person
for any period prior to the date of the installation of the machinery or plant by the assessee.
Explanation 2.—Where in the case of an industrial undertaking, any machinery or plant or any part
thereof previously used for any purpose is transferred to a new business and the total value of the
machinery or plant or part so transferred does not exceed twenty per cent of the total value of the
machinery or plant used in the business, then, for the purposes of clause
of this sub-section, the
condition specified therein shall be deemed to have been complied with.
Explanation 3.—For the purposes of this sub-section, “small-scale industrial undertaking” shall have
the same meaning as in clause
of the Explanation below sub-section
of section 80HHA.
This section applies to any ship, where all the following conditions are fulfilled, namely:—
it is owned by an Indian company and is wholly used for the purposes of the business carried
on by it;
it was not, previous to the date of its acquisition by the Indian company, owned or used in
Indian territorial waters by a person resident in India; and
it is brought into use by the Indian company at any time within the period of 1[ten years] next
following the 1st day of April, 1981.
This section applies to the business of any hotel, where all the following conditions are fulfilled,
namely:—
the business of the hotel is not formed by the splitting up, or the reconstruction, of a business
already in existence or by the transfer to a new business of a building previously used as a hotel or of
any machinery or plant previously used for any purpose;
the business of the hotel is owned and carried on by a company registered in India with a
paid-up capital of not less than five hundred thousand rupees;
the hotel is for the time being approved for the purposes of this sub-section by the Central
Government;
the business of the hotel starts functioning after the 31st day of March, 1981, but 2[before the
1st day of April, 3[1991]].
1. Subs. by 49 of 1991, s. 31, for “fourteen years” (w.e.f. 11991). Earlier “fourteen years” was subs. for “nine years” by
Act 12 of 1990 s. 24 (w.e.f. 11990) which was earlier substituted for “four years” by Act 32 of 1985,
s. 20 (w.e.f. 11985).
2. Subs. by Act 12 of 1990, s. 24, for “before the first day of April, 1990” (w.e.f. 11990). Earlier “1990” was substituted
for “1985” by 32 of 1985, s. 20 (w.e.f. 11985).