Income Tax Act, 2025
Section 3: Subs. by Act 29 of 1977, s. 9, for sub-clauses (ii) and (iii) (w.e.f. 11978).
3. Subs. by Act 29 of 1977, s. 9, for sub-clauses (ii) and (iii) (w.e.f. 11978).
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(ii) any new machinery or plant installed,
after the 31st day of March, 1987 but before the 1st day of April, 1988, unless such ship or
aircraft is acquired or such machinery or plant is installed in the circumstances specified in
clause (a) of sub-section (8B) and the assessee furnishes evidence to the satisfaction of the
Assessing Officer as specified in that clause;]
1[(c) any new machinery or plant installed after the 31st day of March, 1983, but before the 2[1st
day of April, 1987,] for the purposes of business of repairs to ocean-going vessels or other powered
craft if the business is carried on by an Indian company and the business so carried on is for the time
being approved for the purposes of this clause by the Central Government.]
Explanation.—For the purposes of 3[this sub-section and sub-sections (2B), (2C) and (4)],—
4[(1) (a) “new ship” or “new aircraft” includes a ship or aircraft which before the date of
acquisition by the assessee was used by any other person, if it was not at any time previous to the
date of such acquisition owned by any person resident in India;
(b) “new machinery or plant” includes machinery or plant which before its installation by the
assessee was used outside India by any other person, if the following conditions are fulfilled,
namely:—
(i) such machinery or plant was not, at any time previous to the date of such installation
by the assessee, used in India;
(ii) such machinery or plant is imported into India from any country outside India; and
(iii) no deduction on account of depreciation in respect of such machinery or plant has
been allowed or is allowable under the provisions of the Indian Income-tax Act, 1922 (11 of
1922), or this Act in computing the total income of any person for any period prior to the date
of the installation of the machinery or plant by the assessee,]
(2) an industrial undertaking shall be deemed to be a small-scale industrial undertaking, if the
aggregate value of the machinery and plant (other than tools, jigs, dies and moulds) installed, as
on the last day of the previous year, for the purposes of 5[the business of the undertaking does not
exceed,—
6[(i) in a case where the previous year ends before the 1st day of August, 1980, ten lakh
rupees;
(ii) in a case where the previous year ends after the 31st day of July, 1980, but before the
18th day of March, 1985, twenty lakh rupees; and
(iii) in a case where the previous year ends after the 17th day of March, 1985, thirty-five
lakh rupees,]]
and for this purpose the value of any machinery or plant shall be,—
(a) in the case of any machinery or plant owned by the assessee, the actual cost thereof to the
assessee; and
and
(w.e.f. 11978).
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any new machinery or plant installed,
after the 31st day of March, 1987 but before the 1st day of April, 1988, unless such ship or
aircraft is acquired or such machinery or plant is installed in the circumstances specified in
clause
of sub-section
and the assessee furnishes evidence to the satisfaction of the
Assessing Officer as specified in that clause;]
1[
any new machinery or plant installed after the 31st day of March, 1983, but before the 2[1st
day of April, 1987,] for the purposes of business of repairs to ocean-going vessels or other powered
craft if the business is carried on by an Indian company and the business so carried on is for the time
being approved for the purposes of this clause by the Central Government.]
Explanation.—For the purposes of 3[this sub-section and sub-sections
and
(a) “new ship” or “new aircraft” includes a ship or aircraft which before the date of
acquisition by the assessee was used by any other person, if it was not at any time previous to the
date of such acquisition owned by any person resident in India;
“new machinery or plant” includes machinery or plant which before its installation by the
assessee was used outside India by any other person, if the following conditions are fulfilled,
namely:—
such machinery or plant was not, at any time previous to the date of such 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 the Indian Income-tax Act, 1922 (11 of
1922), or this Act in computing the total income of any person for any period prior to the date
of the installation of the machinery or plant by the assessee,]
an industrial undertaking shall be deemed to be a small-scale industrial undertaking, if the
aggregate value of the machinery and plant (other than tools, jigs, dies and moulds) installed, as
on the last day of the previous year, for the purposes of 5[the business of the undertaking does not
exceed,—
6[
in a case where the previous year ends before the 1st day of August, 1980, ten lakh
rupees;
in a case where the previous year ends after the 31st day of July, 1980, but before the
18th day of March, 1985, twenty lakh rupees; and
in a case where the previous year ends after the 17th day of March, 1985, thirty-five
lakh rupees,]]
and for this purpose the value of any machinery or plant shall be,—
in the case of any machinery or plant owned by the assessee, the actual cost thereof to the
assessee; and