Income Tax Act, 2025
Section 12: Subs. by Act 22 of 2007, s. 28, for “clause (iv)” (w.e.f. 12008).
12. Subs. by Act 22 of 2007, s. 28, for “clause (iv)” (w.e.f. 12008).
13. The words, brackets and figures “or clause (vi)” omitted by Act 33 of 2009, s. 36 (w.e.f. 12010).
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(ii) it is not formed by the transfer to a new business of machinery or plant previously used for
any purpose:
1[Provided that nothing contained in this sub-section shall apply in the case of transfer, either in
whole or in part, of machinery or plant previously used by a State Electricity Board referred to in clause
(7) of section 2 of the Electricity Act, 2003 (36 of 2003), whether or not such transfer is in pursuance of
the splitting up or reconstruction or reorganisation of the Board under Part XIII of that Act.]
Explanation 1.—For the purposes of clause (ii), any machinery or plant which was used outside India
by any person other than the assessee shall not be regarded as machinery or plant previously used for any
purpose, if the following conditions are fulfilled, namely :—
(a) such machinery or plant was not, at any time previous to the date of the installation by the
assessee, used in India;
(b) such machinery or plant is imported into India from any country outside India; and
(c) no deduction on account of depreciation in respect of such machinery or plant has been
allowed or is allowable under the provisions of this Act in computing the total income of any person
for any period prior to the date of the installation of machinery or plant by the assessee.
Explanation 2.—Where in the case of an 2[undertaking], any machinery or plant or any part thereof
previously used for any purpose is transferred to a new business and the total value of the machinery or
plant or part so transferred does not exceed twenty per cent of the total value of the machinery or plant
used in the business, then, for the purposes of clause (ii) of this sub-section, the condition specified
therein shall be deemed to have been complied with.
(4) This section applies to—
(i) any enterprise carrying on the business 3[of (i) developing or (ii) operating and maintaining
or (iii) developing, operating and maintaining] any infrastructure facility which fulfils all the
following conditions, namely :—
(a) it is owned by a company registered in India or by a consortium of such companies 4[or
by an authority or a board or a corporation or any other body established or constituted under any
Central or State Act]:
5[(b) it has entered into an agreement with the Central Government or a State Government or
a local authority or any other statutory body for (i) developing or (ii) operating and maintaining
or (iii) developing, operating and maintaining a new infrastructure facility;]
(c) it has started or starts operating and maintaining the infrastructure facility on or after the
1st day of April, 1995:
Provided that where an infrastructure facility is transferred on or after the 1st day
of April, 1999 by an enterprise which developed such infrastructure facility (hereafter
referred to in this section as the transferor enterprise) to another enterprise (hereafter in this
section referred to as the transferee enterprise) for the purpose of operating and maintaining the
infrastructure facility on its behalf in accordance with the agreement with the Central
it is not formed by the transfer to a new business of machinery or plant previously used for
any purpose:
1[Provided that nothing contained in this sub-section shall apply in the case of transfer, either in
whole or in part, of machinery or plant previously used by a State Electricity Board referred to in clause
of section 2 of the Electricity Act, 2003 (36 of 2003), whether or not such transfer is in pursuance of
the splitting up or reconstruction or reorganisation of the Board under Part XIII of that Act.]
Explanation 1.—For the purposes of clause
such machinery or plant was not, at any time previous to the date of the installation by the
assessee, used in India;
such machinery or plant is imported into India from any country outside India; and
no deduction on account of depreciation in respect of such machinery or plant has been
allowed or is allowable under the provisions of this Act in computing the total income of any person
for any period prior to the date of the installation of machinery or plant by the assessee.
Explanation 2.—Where in the case of an 2[undertaking], any machinery or plant or any part thereof
previously used for any purpose is transferred to a new business and the total value of the machinery or
plant or part so transferred does not exceed twenty per cent of the total value of the machinery or plant
used in the business, then, for the purposes of clause
of this sub-section, the condition specified
therein shall be deemed to have been complied with.
This section applies to—
any enterprise carrying on the business 3[of
developing or
operating and maintaining
or
developing, operating and maintaining] any infrastructure facility which fulfils all the
following conditions, namely :—
it is owned by a company registered in India or by a consortium of such companies 4[or
by an authority or a board or a corporation or any other body established or constituted under any
Central or State Act]:
5[
it 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;]
it has started or starts operating and maintaining the infrastructure facility on or after the
1st day of April, 1995:
Provided that where an infrastructure facility is transferred on or after the 1st day
of April, 1999 by an enterprise which developed such infrastructure facility (hereafter
referred to in this section as the transferor enterprise) to another enterprise (hereafter in this
section referred to as the transferee enterprise) for the purpose of operating and maintaining the
infrastructure facility on its behalf in accordance with the agreement with the Central