Income Tax Act, 2025
Section 1: The proviso omitted by Act 27 of 1999, s. 13 (w.e.f. 11999).
1. The proviso omitted by Act 27 of 1999, s. 13 (w.e.f. 11999).
180
Provided that nothing in this sub-section shall apply—
(i) where the asset is sold or otherwise transferred by the assessee to Government, a local
authority, a corporation established by or under a Central, State or Provincial Act or a Government
company as defined in section 617 of the Companies Act, 1956 (1 of 1956); or
(ii) where the sale or transfer of the asset is made in connection with the succession of a firm by
a company in the business or profession carried on by the firm as a result of which the firm sells or
otherwise transfers to the company any asset and the scheme or the deposit scheme continues to apply
to the company in the manner applicable to the firm.
Explanation.—The provisions of clause (ii) of the proviso shall apply only where—
(i) all the properties of the firm relating to the business or profession immediately before the
succession become the properties of the company;
(ii) all the liabilities of the firm relating to the business or profession immediately before the
succession become the liabilities of the company; and
(iii) all the shareholders of the company were partners of the firm immediately before the
succession.
(9) The Central Government may, if it considers necessary or expedient so to do, by notification in
the Official Gazette, direct that the deduction allowable under this section shall not be allowed after such
date as may be specified therein.
Explanation.—For the purposes of this section,—
(a) “State Bank of India” means the State Bank of India constituted under the State Bank of India
Act, 1955 (23 of 1955);
(b) the expression “amount standing to the credit of the assessee in the special account or the Site
Restoration Account” includes interest accrued to such accounts.]
1[33AC. Reserves for shipping business.—(1) 2[In the case of an assessee, being a Government
company or a public company formed and registered in India with the main object of carrying on the
business of operation of ships, there shall, in accordance with and subject to the provisions of this section,
be allowed a deduction of an amount not exceeding fifty per cent. of profits derived from the business of
operation of ships (computed under the head “Profits and gains of business or profession” and before
making any deduction under this section), as is debited to the profit and loss account of the previous year
in respect of which the deduction is to be allowed and credited to a reserve account, to be utilised in the
manner laid down in sub-section (2):]
3[Provided that where the aggregate of the amounts carried to such reserve account from time to time
exceeds twice the aggregate of the amounts of the paid-up share capital, the general reserves and amount
credited to the share premium account of the assessee, no allowance under this sub-section shall be made
in respect of such excess:]
4[Provided further that for five assessment years commencing on or after the 1st day of April, 2001
and ending before the 1st day of April, 2006, the provisions of this sub-section shall have effect as if for
the words “an amount not exceeding fifty per cent.. of profits”, the words “an amount not exceeding the
profits” had been substituted:]
where the asset is sold or otherwise transferred by the assessee to Government, a local
authority, a corporation established by or under a Central, State or Provincial Act or a Government
company as defined in section 617 of the Companies Act, 1956 (1 of 1956); or
where the sale or transfer of the asset is made in connection with the succession of a firm by
a company in the business or profession carried on by the firm as a result of which the firm sells or
otherwise transfers to the company any asset and the scheme or the deposit scheme continues to apply
to the company in the manner applicable to the firm.
Explanation.—The provisions of clause
of the proviso shall apply only where—
all the properties of the firm relating to the business or profession immediately before the
succession become the properties of the company;
all the liabilities of the firm relating to the business or profession immediately before the
succession become the liabilities of the company; and
all the shareholders of the company were partners of the firm immediately before the
succession.
The Central Government may, if it considers necessary or expedient so to do, by notification in
the Official Gazette, direct that the deduction allowable under this section shall not be allowed after such
date as may be specified therein.
Explanation.—For the purposes of this section,—
“State Bank of India” means the State Bank of India constituted under the State Bank of India
Act, 1955 (23 of 1955);
the expression “amount standing to the credit of the assessee in the special account or the Site
Restoration Account” includes interest accrued to such accounts.]
1[33AC. Reserves for shipping business.—
2[In the case of an assessee, being a Government
company or a public company formed and registered in India with the main object of carrying on the
business of operation of ships, there shall, in accordance with and subject to the provisions of this section,
be allowed a deduction of an amount not exceeding fifty per cent. of profits derived from the business of
operation of ships (computed under the head “Profits and gains of business or profession” and before
making any deduction under this section), as is debited to the profit and loss account of the previous year
in respect of which the deduction is to be allowed and credited to a reserve account, to be utilised in the
manner laid down in sub-section