Income Tax Act, 2025
Section 3: Ins. by Act 33 of 2009, s. 13 (w.e.f. 12010).
3. Ins. by Act 33 of 2009, s. 13 (w.e.f. 12010).
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Provided that the expenditure incurred, wholly and exclusively, for the purposes of any specified
business, shall be allowed as deduction during the previous year in which he commences operations of his
specified business, if—
(a) the expenditure is incurred prior to the commencement of its operations; and
(b) the amount is capitalised in the books of account of the assessee on the date of
commencement of its operations.]
1 * * * * *
(2) This section applies to the specified business which fulfils all the following conditions,
namely:—
(i) it is not set up by splitting up, or the reconstruction, of a business already in existence;
(ii) it is not set up by the transfer to the specified business of machinery or plant previously used
for any purpose;
(iii) where the business is of the nature referred to in sub-clause (iii) of clause (c) of
sub-section (8), such business,—
(a) is owned by a company formed and registered in India under the Companies
Act, 1956 (1 of 1956) or by a consortium of such companies or by an authority or a board or a
corporation established or constituted under any Central or State Act;
(b) has been approved by the Petroleum and Natural Gas Regulatory Board established
under sub-section (1) of section 3 of the Petroleum and Natural Gas Regulatory Board
Act, 2006 (19 of 2006) and notified by the Central Government in the Official Gazette in this
behalf;
(c) has made not less than 2[such proportion of its total pipeline capacity as specified by
regulations made by the Petroleum and Natural Gas Regulatory Board established under subsection (1) of section 3 of the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of
2006)] available for use on common carrier basis by any person other than the assessee or an
associated person; and
(d) fulfils any other condition as may be prescribed.
3[(iv) where the business is of the nature referred to in sub-clause (xiv) of clause (c) of
sub-section (8), such business,—
(A) is owned by a company registered in India or by a consortium of such companies or by an
authority or a board or corporation or any other body established or constituted under any Central
or State Act;
(B) entity referred to in sub-clause (A) has entered into an agreement with the Central
Government or a State Government or a local authority or any other statutory body for
developing or operating and maintaining or developing, operating and maintaining, a new
infrastructure facility.]
4[(3) Where a deduction under this section is claimed and allowed in respect of the specified business
for any assessment year, no deduction shall be allowed under the provisions of 5[section 10AA and]
the expenditure is incurred prior to the commencement of its operations; and
the amount is capitalised in the books of account of the assessee on the date of
commencement of its operations.]
1 * * * * *
This section applies to the specified business which fulfils all the following conditions,
namely:—
it is not set up by splitting up, or the reconstruction, of a business already in existence;
it is not set up by the transfer to the specified business of machinery or plant previously used
for any purpose;
where the business is of the nature referred to in sub-clause
of clause
of
sub-section
is owned by a company formed and registered in India under the Companies
Act, 1956 (1 of 1956) or by a consortium of such companies or by an authority or a board or a
corporation established or constituted under any Central or State Act;
has been approved by the Petroleum and Natural Gas Regulatory Board established
under sub-section
of section 3 of the Petroleum and Natural Gas Regulatory Board
Act, 2006 (19 of 2006) and notified by the Central Government in the Official Gazette in this
behalf;
has made not less than 2[such proportion of its total pipeline capacity as specified by
regulations made by the Petroleum and Natural Gas Regulatory Board established under subsection
of section 3 of the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of
2006)] available for use on common carrier basis by any person other than the assessee or an
associated person; and
fulfils any other condition as may be prescribed.
3[
where the business is of the nature referred to in sub-clause
of clause
of
sub-section
is owned by a company registered in India or by a consortium of such companies or by an
authority or a board or corporation or any other body established or constituted under any Central
or State Act;
entity referred to in sub-clause
has entered into an agreement with the Central
Government or a State Government or a local authority or any other statutory body for
developing or operating and maintaining or developing, operating and maintaining, a new
infrastructure facility.]
4[
Where a deduction under this section is claimed and allowed in respect of the specified business
for any assessment year, no deduction shall be allowed under the provisions of 5[section 10AA and]