Income Tax Act, 2025
Section 1: Ins. by Act 12 of 1990, s. 20 (w.e.f. 11990).
1. Ins. by Act 12 of 1990, s. 20 (w.e.f. 11990).
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(6) Where any goods held for the purposes of the business of the industrial undertaking or the hotel
are transferred to any other business carried on by the assessee, or where any goods held for the purposes
of any other business carried on by the assessee are transferred to the business of the industrial
undertaking or the hotel and, in either case, the consideration, if any, for such transfer as recorded in the
accounts of the business of the industrial undertaking or the hotel does not correspond to the market value
of such goods as on the date of the transfer, then, for the purposes of the deduction under this section, the
profits and gains of the industrial undertaking or the business of the hotel shall be computed as if the
transfer, in either case, had been made at the market value of such goods as on that date :
Provided that where, in the opinion of the 1[Assessing Officer], the computation of the profits and
gains of the industrial undertaking or the business of the hotel in the manner hereinbefore specified
presents exceptional difficulties, the 1[Assessing Officer] may compute such profits and gains on such
reasonable basis as he may deem fit.
Explanation.—In this sub-section, “market value” in relation to any goods means the price that such
goods would ordinarily fetch on sale in the open market.
(7) Where it appears to the 1[Assessing Officer] that, owing to the close connection between the
assessee carrying on the business of the industrial undertaking or the hotel to which this section applies
and any other person, or for any other reason, the course of business between them is so arranged that the
business transacted between them produces to the assessee more than the ordinary profits which might be
expected to arise in the business of the industrial undertaking or the hotel, the 1[Assessing Officer] shall,
in computing the profits and gains of the industrial undertaking or the hotel for the purposes of the
deduction under this section, take the amount of profits as may be reasonably deemed to have been
derived therefrom.
2* * * * *
(9) In a case where the assessee is entitled also to the deduction 3[under section 80-I or section 80J] in
relation to the profits and gains of an industrial undertaking or the business of a hotel to which this section
applies, effect shall first be given to the provisions of this section.
4[(9A) Where a deduction in relation to the profits and gains of a small-scale industrial undertaking to
which section 80HHA applies is claimed and allowed under that section for any assessment year,
deduction in relation to such profits and gains shall not be allowed under this section for the same or any
other assessment year.]
(10) Nothing contained in this section shall apply in relation to any undertaking engaged in mining.]
5[(11) For the purposes of this section, “backward area” means such area as the Central Government
may, having regard to the stage of development of that area, by notification in the Official Gazette,
specify in this behalf:
Provided that any notification under this sub-section may be issued so as to have retrospective effect
to a date not earlier than the 1st day of April, 1983.]
Where any goods held for the purposes of the business of the industrial undertaking or the hotel
are transferred to any other business carried on by the assessee, or where any goods held for the purposes
of any other business carried on by the assessee are transferred to the business of the industrial
undertaking or the hotel and, in either case, the consideration, if any, for such transfer as recorded in the
accounts of the business of the industrial undertaking or the hotel does not correspond to the market value
of such goods as on the date of the transfer, then, for the purposes of the deduction under this section, the
profits and gains of the industrial undertaking or the business of the hotel shall be computed as if the
transfer, in either case, had been made at the market value of such goods as on that date :
Provided that where, in the opinion of the 1[Assessing Officer], the computation of the profits and
gains of the industrial undertaking or the business of the hotel in the manner hereinbefore specified
presents exceptional difficulties, the 1[Assessing Officer] may compute such profits and gains on such
reasonable basis as he may deem fit.
Explanation.—In this sub-section, “market value” in relation to any goods means the price that such
goods would ordinarily fetch on sale in the open market.
Where it appears to the 1[Assessing Officer] that, owing to the close connection between the
assessee carrying on the business of the industrial undertaking or the hotel to which this section applies
and any other person, or for any other reason, the course of business between them is so arranged that the
business transacted between them produces to the assessee more than the ordinary profits which might be
expected to arise in the business of the industrial undertaking or the hotel, the 1[Assessing Officer] shall,
in computing the profits and gains of the industrial undertaking or the hotel for the purposes of the
deduction under this section, take the amount of profits as may be reasonably deemed to have been
derived therefrom.
2* * * * *
In a case where the assessee is entitled also to the deduction 3[under section 80-I or section 80J] in
relation to the profits and gains of an industrial undertaking or the business of a hotel to which this section
applies, effect shall first be given to the provisions of this section.
4[
Where a deduction in relation to the profits and gains of a small-scale industrial undertaking to
which section 80HHA applies is claimed and allowed under that section for any assessment year,
deduction in relation to such profits and gains shall not be allowed under this section for the same or any
other assessment year.]
Nothing contained in this section shall apply in relation to any undertaking engaged in mining.]
5[
For the purposes of this section, “backward area” means such area as the Central Government
may, having regard to the stage of development of that area, by notification in the Official Gazette,
specify in this behalf:
Provided that any notification under this sub-section may be issued so as to have retrospective effect
to a date not earlier than the 1st day of April, 1983.]