Income Tax Act, 2025
Section 7: Subs. by Act 32 of 2003, s. 7 (w.e.f. 12004).
7. Subs. by Act 32 of 2003, s. 7 (w.e.f. 12004).
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1[Provided that no deduction under this section shall be allowed to an assessee who does not
furnish a return of his income on or before the due date specified under sub-section (1) of section
139.]
(1B) The deduction under clause (ii) of sub-section (1A) shall be allowed only if the following
conditions are fulfilled, namely:—
(a) the amount credited to the Special Economic Zone Re-investment Allowance Reserve
Account is to be utilised—
(i) for the purposes of acquiring new machinery or plant which is first put to use before the
expiry of a period of three years next following the previous year in which the reserve was
created; and
(ii) until the acquisition of new machinery or plant as aforesaid, for the purposes of the
business of the undertaking other than for distribution by way of dividends or profits or for
remittance outside India as profits or for the creation of any asset outside India;
(b) the particulars, as may be prescribed in this behalf, have been furnished by the assessee in
respect of new machinery or plant along with the return of income for the assessment year relevant to
the previous year in which such plant or machinery was first put to use.
(1C) Where any amount credited to the Special Economic Zone Re-investment Allowance Reserve
Account under clause (ii) of sub-section (1A),—
(a) has been utilised for any purpose other than those referred to in sub-section (1B), the amount
so utilised; or
(b) has not been utilised before the expiry of the period specified in sub-clause (i) of clause (a) of
sub-section (1B), the amount not so utilised,
shall be deemed to be the profits,—
(i) in a case referred to in clause (a), in the year in which the amount was so utilised; or
(ii) in a case referred to in clause (b), in the year immediately following the period of three years
specified in sub-clause (i) of clause (a) of sub-section (1B),
and shall be charged to tax accordingly.]
(2) This section applies to any undertaking which fulfils all the following conditions, namely :—
(i) it has begun or begins to manufacture or produce articles or things or computer software
during the previous year relevant to the assessment year—
(a) commencing on or after the 1st day of April, 1981, in any free trade zone; or
(b) commencing on or after the 1st day of April, 1994, in any electronic hardware technology
park, or, as the case may be, software technology park;
(c) commencing on or after the 1st day of April, 2001 in any special economic zone;
(ii) it is not formed by the splitting up, or the reconstruction, of a business already in existence:
Provided that this condition shall not apply in respect of any undertaking which is formed as a
result of the re-establishment, reconstruction or revival by the assessee of the business of any such
undertakings as is referred to in section 33B, in the circumstances and within the period specified in
that section;
(iii) it is not formed by the transfer to a new business of machinery or plant previously used for
any purpose.
of section
139.]
The deduction under clause
of sub-section
shall be allowed only if the following
conditions are fulfilled, namely:—
the amount credited to the Special Economic Zone Re-investment Allowance Reserve
Account is to be utilised—
for the purposes of acquiring new machinery or plant which is first put to use before the
expiry of a period of three years next following the previous year in which the reserve was
created; and
until the acquisition of new machinery or plant as aforesaid, for the purposes of the
business of the undertaking other than for distribution by way of dividends or profits or for
remittance outside India as profits or for the creation of any asset outside India;
the particulars, as may be prescribed in this behalf, have been furnished by the assessee in
respect of new machinery or plant along with the return of income for the assessment year relevant to
the previous year in which such plant or machinery was first put to use.
Where any amount credited to the Special Economic Zone Re-investment Allowance Reserve
Account under clause
of sub-section
has been utilised for any purpose other than those referred to in sub-section
has not been utilised before the expiry of the period specified in sub-clause
of clause
of
sub-section
in a case referred to in clause
in a case referred to in clause
of clause
of sub-section
This section applies to any undertaking which fulfils all the following conditions, namely :—
it has begun or begins to manufacture or produce articles or things or computer software
during the previous year relevant to the assessment year—
commencing on or after the 1st day of April, 1981, in any free trade zone; or
commencing on or after the 1st day of April, 1994, in any electronic hardware technology
park, or, as the case may be, software technology park;
commencing on or after the 1st day of April, 2001 in any special economic zone;
it is not formed by the splitting up, or the reconstruction, of a business already in existence:
Provided that this condition shall not apply in respect of any undertaking which is formed as a
result of the re-establishment, reconstruction or revival by the assessee of the business of any such
undertakings 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.