Income Tax Act, 2025
Section 6: Subs.by Act 23 of 1986, s. 7, for sub-clause (i) (w.e.f. 11985).
6. Subs.by Act 23 of 1986, s. 7, for sub-clause (i) (w.e.f. 11985).
157
(b) in the case of any machinery or plant hired by the assessee, the actual cost thereof as in
the case of the owner of such machinery or plant.
1[(2A) The deduction under sub-section (1) shall not be denied in respect of any machinery or
plant installed and used mainly for the purposes of business of construction, manufacture or
production of any article or thing, not being an article or thing specified in the list in the Eleventh
Schedule, by reason only that such machinery or plant is also used for the purposes of business of
construction, manufacture or production of any article or thing specified in the said list.
(2B) Where any new machinery or plant is installed after the 30th day of June, 1977, 2[but
before the 1st day of April, 1987], for the purposes of business of manufacture or production of
any article or thing and such article or thing—
(a) is manufactured or produced by using any technology (including any process) or other
know how developed in, or
(b) is an article or thing invented in,
a laboratory owned or financed by the Government, or a laboratory owned by a public sector
company or a University or by an institution recognised in this behalf by the prescribed
authority,the provisions of sub-section (1) shall have effect in relation to such machinery or plant
as if for the words “twenty-five per cent..”, the words “thirty-five per cent..” had been substituted,
if the following conditions are fulfilled, namely:—
(i) the right to use such technology (including any process) or other know-how or to
manufacture or produce such article or thing has been acquired from the owner of such laboratory
or any person deriving title from such owner ;
(ii) the assessee furnishes, along with his return of income for the assessment year for which
the deduction is claimed, a certificate from the prescribed authority to the effect that such article
or thing is manufactured or produced by using such technology (including any process) or other
knowhow developed in such laboratory or is an article or thing invented in such laboratory; and
(iii) the machinery or plant is not used for the purpose of business of manufacture or
production of any article or thing specified in the list in the Eleventh Schedule.
Explanation.—For the purposes of this sub-section,—
(a) “laboratory financed by the Government” means a laboratory owned by any body
including a society registered under the Societies Registration Act, 1860 (21 of 1860) and
financed wholly or mainly by the Government;
3* * * * *
(c) “University” means a University established or incorporated by or under a Central,
State or Provincial Act and includes an institution declared under section 3 of the University
Grants Commission Act, 1956 (3 of 1956) to be a University for the purposes of that Act.]
4[(2C) Where any new machinery or plant, being machinery or plant which would assist in
control of pollution or protection of environment and which has been notified in this behalf by the
Central Government in the Official Gazette, is installed after the 31st day of May, 1983 but
(w.e.f. 11985).
157
in the case of any machinery or plant hired by the assessee, the actual cost thereof as in
the case of the owner of such machinery or plant.
1[
The deduction under sub-section
shall not be denied in respect of any machinery or
plant installed and used mainly for the purposes of business of construction, manufacture or
production of any article or thing, not being an article or thing specified in the list in the Eleventh
Schedule, by reason only that such machinery or plant is also used for the purposes of business of
construction, manufacture or production of any article or thing specified in the said list.
Where any new machinery or plant is installed after the 30th day of June, 1977, 2[but
before the 1st day of April, 1987], for the purposes of business of manufacture or production of
any article or thing and such article or thing—
is manufactured or produced by using any technology (including any process) or other
know how developed in, or
is an article or thing invented in,
a laboratory owned or financed by the Government, or a laboratory owned by a public sector
company or a University or by an institution recognised in this behalf by the prescribed
authority,the provisions of sub-section
shall have effect in relation to such machinery or plant
as if for the words “twenty-five per cent..”, the words “thirty-five per cent..” had been substituted,
if the following conditions are fulfilled, namely:—
the right to use such technology (including any process) or other know-how or to
manufacture or produce such article or thing has been acquired from the owner of such laboratory
or any person deriving title from such owner ;
the assessee furnishes, along with his return of income for the assessment year for which
the deduction is claimed, a certificate from the prescribed authority to the effect that such article
or thing is manufactured or produced by using such technology (including any process) or other
knowhow developed in such laboratory or is an article or thing invented in such laboratory; and
the machinery or plant is not used for the purpose of business of manufacture or
production of any article or thing specified in the list in the Eleventh Schedule.
Explanation.—For the purposes of this sub-section,—
“laboratory financed by the Government” means a laboratory owned by any body
including a society registered under the Societies Registration Act, 1860 (21 of 1860) and
financed wholly or mainly by the Government;
3* * * * *
“University” means a University established or incorporated by or under a Central,
State or Provincial Act and includes an institution declared under section 3 of the University
Grants Commission Act, 1956 (3 of 1956) to be a University for the purposes of that Act.]
4[
Where any new machinery or plant, being machinery or plant which would assist in
control of pollution or protection of environment and which has been notified in this behalf by the
Central Government in the Official Gazette, is installed after the 31st day of May, 1983 but