Income Tax Act, 2025
Section 2: Subs. by Act 22 of 2007, s. 30, for “1st day of April, 2012” (w.e.f. 12008).
2. Subs. by Act 22 of 2007, s. 30, for “1st day of April, 2012” (w.e.f. 12008).
405
(4) This section applies to any undertaking or enterprise which fulfils all the following conditions,
namely:—
(i) it is not formed by splitting up, or the reconstruction, of a business already in existence :
Provided that this condition shall not apply in respect of an undertaking which is formed as a
result of the re-establishment, reconstruction or revival by the assessee of the business of any such
undertaking as is referred to in section 33B, in the circumstances and within the period specified in
that section;
(ii) it is not formed by the transfer to a new business of machinery or plant previously used for
any purpose.
Explanation.—The provisions of Explanations 1 and 2 to sub-section (3) of sectopm 80-IA shall
apply for the purposes of clause (ii) of this sub-section as they apply for the purposes of clause (ii) of that
sub-section.
(5) Notwithstanding anything contained in any other provision of this Act, in computing the total
income of the assessee, no deduction shall be allowed under any other section contained in Chapter VIA
or in section 10A or section 10B, in relation to the profits and gains of the undertaking or enterprise.
(6) Notwithstanding anything contained in this Act, no deduction shall be allowed to any undertaking
or enterprise under this section, where the total period of deduction inclusive of the period of deduction
under this section, or under the second proviso to sub-section (4) of section 80-IB or under section 10C,
as the case may be, exceeds ten assessment years.
(7) The provisions contained in sub-section (5) and sub-sections (7) to (12) of section 80-IA shall, so
far as may be, apply to the eligible undertaking or enterprise under this section.
(8) For the purposes of this section,—
(i) “Industrial Area” means such areas, which the Board, may, by notification in the Official
Gazette, specify in accordance with the scheme framed and notified by the Central Government;
(ii) “Industrial Estate” means such estates, which the Board, may, by notification in the Official
Gazette, specify in accordance with the scheme framed and notified by the Central Government;
(iii) “Industrial Growth Centre” means such centres, which the Board, may, by notification in the
Official Gazette, specify in accordance with the scheme framed and notified by the Central
Government;
(iv) “Industrial Park” means such parks, which the Board, may, by notification in the Official
Gazette, specify in accordance with the scheme framed and notified by the Central Government;
(v) “Initial assessment year” means the assessment year relevant to the previous year in which
the undertaking or the enterprise begins to manufacture or produce articles or things, or commences
operation or completes substantial expansion;
(vi) “Integrated Infrastructure Development Centre” means such centres, which the Board, may,
by notification in the Official Gazette, specify in accordance with the scheme framed and notified by
the Central Government;
(vii) “North-Eastern States” means the States of Arunachal Pradesh, Assam, Manipur,
Meghalaya, Mizoram, Nagaland and Tripura;
(viii) “Software Technology Park” means any park set up in accordance with the Software
Technology Park Scheme notified by the Government of India in the Ministry of Commerce and
Industry;
(ix) “Substantial expansion” means increase in the investment in the plant and machinery by at
least fifty per cent of the book value of plant and machinery (before taking depreciation in any year),
as on the first day of the previous year in which the substantial expansion is undertaken;
(x) “Theme Park” means such parks, which the Board, may, by notification in the Official
Gazette, specify in accordance with the scheme framed and notified by the Central Government.]
406
1[80-ID. Deduction in respect of profits and gains from business of hotels and convention
centres in specified area.—(1) Where the gross total income of an assessee includes any profits and
gains derived by an undertaking from any business referred to in sub-section (2) (such business being
hereinafter referred to as the eligible business), there shall, in accordance with and subject to the
provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an
amount equal to hundred per cent of the profits and gains derived from such business for five consecutive
assessment years beginning from the initial assessment year.
(2) This section applies to any undertaking,—
(i) engaged in the business of hotel located in the specified area, if such hotel is constructed and
has started or starts functioning at any time during the period beginning on the 1st day of April, 2007
and ending on 2[the 31st day of July, 2010]; or
(ii) engaged in the business of building, owning and operating a convention centre, located in the
specified area, if such convention centre is constructed at any time during the period beginning on the
1st day of April, 2007 and ending on 2[the 31st day of July, 2010];
3[(iii) engaged in the business of hotel located in the specified district having a World Heritage
Site, if such hotel is constructed and has started or starts functioning at any time during the period
beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2013.]
(3) The deduction under sub-section (1) shall be available only if—
(i) the eligible business is not formed by the splitting up, or the reconstruction, of a business
already in existence;
(ii) the eligible business is not formed by the transfer to a new business of a building previously
used as a hotel or a convention centre, as the case may be;
(iii) the eligible business is not formed by the transfer to a new business of machinery or plant
previously used for any purpose.
Explanation.—The provisions of Explanations 1 and 2 to sub-section (3) of section 80-IA shall apply
for the purposes of clause (iii) of this sub-section as they apply for the purposes of clause (ii) of that
sub-section;
(iv) the assessee furnishes along with the return of income, the report of an audit in such form and
containing such particulars as may be prescribed, and duly signed and verified by an accountant, as
defined in the Explanation below sub-section (2) of section 288, certifying that the deduction has
been correctly claimed.
(4) Notwithstanding anything contained in any other provision of this Act, in computing the total
income of the assessee, no deduction shall be allowed under any other section contained in Chapter VIA
or section 10AA, in relation to the profits and gains of the undertaking.
(5) The provisions contained in sub-section (5) and sub-sections (8) to (11) of section 80-IA shall, so
far as may be, apply to the eligible business under this section.
(6) For the purposes of this section,—
(a) “convention centre” means a building of a prescribed area comprising of convention halls to
be used for the purpose of holding conferences and seminars, being of such size and number and
having such other facilities and amenities, as may be prescribed;
(b) “hotel” means a hotel of two-star, three-star or four-star category as classified by the Central
Government;
This section applies to any undertaking or enterprise which fulfils all the following conditions,
namely:—
it is not formed by splitting up, or the reconstruction, of a business already in existence :
Provided that this condition shall not apply in respect of an undertaking which is formed as a
result of the re-establishment, reconstruction or revival by the assessee of the business of any such
undertaking as is referred to in section 33B, in the circumstances and within the period specified in
that section;
it is not formed by the transfer to a new business of machinery or plant previously used for
any purpose.
Explanation.—The provisions of Explanations 1 and 2 to sub-section
of sectopm 80-IA shall
apply for the purposes of clause
of this sub-section as they apply for the purposes of clause
of that
sub-section.
Notwithstanding anything contained in any other provision of this Act, in computing the total
income of the assessee, no deduction shall be allowed under any other section contained in Chapter VIA
or in section 10A or section 10B, in relation to the profits and gains of the undertaking or enterprise.
Notwithstanding anything contained in this Act, no deduction shall be allowed to any undertaking
or enterprise under this section, where the total period of deduction inclusive of the period of deduction
under this section, or under the second proviso to sub-section
of section 80-IB or under section 10C,
as the case may be, exceeds ten assessment years.
The provisions contained in sub-section
and sub-sections
to
of section 80-IA shall, so
far as may be, apply to the eligible undertaking or enterprise under this section.
For the purposes of this section,—
“Industrial Area” means such areas, which the Board, may, by notification in the Official
Gazette, specify in accordance with the scheme framed and notified by the Central Government;
“Industrial Estate” means such estates, which the Board, may, by notification in the Official
Gazette, specify in accordance with the scheme framed and notified by the Central Government;
“Industrial Growth Centre” means such centres, which the Board, may, by notification in the
Official Gazette, specify in accordance with the scheme framed and notified by the Central
Government;
“Industrial Park” means such parks, which the Board, may, by notification in the Official
Gazette, specify in accordance with the scheme framed and notified by the Central Government;
“Initial assessment year” means the assessment year relevant to the previous year in which
the undertaking or the enterprise begins to manufacture or produce articles or things, or commences
operation or completes substantial expansion;
“Integrated Infrastructure Development Centre” means such centres, which the Board, may,
by notification in the Official Gazette, specify in accordance with the scheme framed and notified by
the Central Government;
“North-Eastern States” means the States of Arunachal Pradesh, Assam, Manipur,
Meghalaya, Mizoram, Nagaland and Tripura;
“Software Technology Park” means any park set up in accordance with the Software
Technology Park Scheme notified by the Government of India in the Ministry of Commerce and
Industry;
“Substantial expansion” means increase in the investment in the plant and machinery by at
least fifty per cent of the book value of plant and machinery (before taking depreciation in any year),
as on the first day of the previous year in which the substantial expansion is undertaken;
“Theme Park” means such parks, which the Board, may, by notification in the Official
Gazette, specify in accordance with the scheme framed and notified by the Central Government.]
406
1[80-ID. Deduction in respect of profits and gains from business of hotels and convention
centres in specified area.—
Where the gross total income of an assessee includes any profits and
gains derived by an undertaking from any business referred to in sub-section
(such business being
hereinafter referred to as the eligible business), there shall, in accordance with and subject to the
provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an
amount equal to hundred per cent of the profits and gains derived from such business for five consecutive
assessment years beginning from the initial assessment year.
This section applies to any undertaking,—
engaged in the business of hotel located in the specified area, if such hotel is constructed and
has started or starts functioning at any time during the period beginning on the 1st day of April, 2007
and ending on 2[the 31st day of July, 2010]; or
engaged in the business of building, owning and operating a convention centre, located in the
specified area, if such convention centre is constructed at any time during the period beginning on the
1st day of April, 2007 and ending on 2[the 31st day of July, 2010];
3[
engaged in the business of hotel located in the specified district having a World Heritage
Site, if such hotel is constructed and has started or starts functioning at any time during the period
beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2013.]
The deduction under sub-section
shall be available only if—
the eligible business is not formed by the splitting up, or the reconstruction, of a business
already in existence;
the eligible business is not formed by the transfer to a new business of a building previously
used as a hotel or a convention centre, as the case may be;
the eligible business is not formed by the transfer to a new business of machinery or plant
previously used for any purpose.
Explanation.—The provisions of Explanations 1 and 2 to sub-section
of section 80-IA shall apply
for the purposes of clause
of this sub-section as they apply for the purposes of clause
of that
sub-section;
the assessee furnishes along with the return of income, the report of an audit in such form and
containing such particulars as may be prescribed, and duly signed and verified by an accountant, as
defined in the Explanation below sub-section
of section 288, certifying that the deduction has
been correctly claimed.
Notwithstanding anything contained in any other provision of this Act, in computing the total
income of the assessee, no deduction shall be allowed under any other section contained in Chapter VIA
or section 10AA, in relation to the profits and gains of the undertaking.
The provisions contained in sub-section
and sub-sections
to
of section 80-IA shall, so
far as may be, apply to the eligible business under this section.
For the purposes of this section,—
“convention centre” means a building of a prescribed area comprising of convention halls to
be used for the purpose of holding conferences and seminars, being of such size and number and
having such other facilities and amenities, as may be prescribed;
“hotel” means a hotel of two-star, three-star or four-star category as classified by the Central
Government;