Income Tax Act, 2025
Section 3: Subs. by Act 49 of 1991, s. 31, for “1995” (w.e.f. 11991).
3. Subs. by Act 49 of 1991, s. 31, for “1995” (w.e.f. 11991).
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1[(4A) This section applies to the business of repairs to ocean-going vessels or other powered craft
which fulfils all the following conditions, namely:—
(i) the business is not formed by the splitting up, or the reconstruction, of a business already in
existence;
(ii) it is not formed by the transfer to a new business of machinery or plant previously used for
any purpose;
(iii) it is carried on by an Indian company and the work by way of repairs to ocean-going vessels
or other powered craft has been commenced by such company after the 31st day of March, 1983, but
before the 1st day of April, 1988; and
(iv) it is for the time being approved for the purposes of this sub-section by the Central
Government.]
(5) The deduction specified in sub-section (1) shall be allowed in computing the total income in
respect of the assessment year relevant to the previous year in which the industrial undertaking begins to
manufacture or produce articles or things, or to operate its cold storage plant or plants or the ship is first
brought into use or the business of the hotel starts functioning 1[or the company commences work by way
of repairs to ocean-going vessels or other powered craft] (such assessment year being hereafter in this
section referred to as the initial assessment year) and each of the seven assessment years immediately
succeeding the initial assessment year:
Provided that in the case of an assessee, being a co-operative society, the provisions of this
sub-section shall have effect as if for the words “seven assessment years”, the words “nine assessment
years” had been substituted:
1[Provided further that in the case of an assessee carrying on the business of repairs to ocean-going
vessels or other powered craft, the provisions of this sub-section shall have effect as if for the words
“seven assessment years”, the words “four assessment years” had been substituted]:
2[Provided also that in the case of—
(i) an industrial undertaking which begins to manufacture or produce articles or things or to
operate its cold storage plant or plants; or
(ii) a ship which is first brought into use; or
(iii) the business of a hotel which starts functioning,
on or after the 1st day of April, 1990 3[but before the 1st day of April, 1991], provisions of this
sub-section shall have effect as if for the words “seven assessment years”, the words “nine assessment
years” had been substituted:
Provided also that in the case of an assessee, being a co-operative society, deriving profits and gains
from an industrial undertaking or a ship or a hotel referred to in the third proviso, the provisions of that
proviso shall have effect as if for the words “nine assessment years”, the words “eleven assessment years”
had been substituted.]
(6) Notwithstanding anything contained in any other provision of this Act, the profits and gains of an
industrial undertaking or a ship or the business of a hotel 1[or the business of repairs to ocean-going
vessels or other powered craft] to which the provisions of sub-section (1) apply shall, for the purposes of
determining the quantum of deduction under sub-section (1) for the assessment year immediately
succeeding the initial assessment year or any subsequent assessment year, be computed as if such
industrial undertaking or ship or the business of the hotel 1[or the business of repairs to ocean-going
This section applies to the business of repairs to ocean-going vessels or other powered craft
which fulfils all the following conditions, namely:—
the business is not formed by the splitting up, or the reconstruction, of a business already in
existence;
it is not formed by the transfer to a new business of machinery or plant previously used for
any purpose;
it is carried on by an Indian company and the work by way of repairs to ocean-going vessels
or other powered craft has been commenced by such company after the 31st day of March, 1983, but
before the 1st day of April, 1988; and
it is for the time being approved for the purposes of this sub-section by the Central
Government.]
The deduction specified in sub-section
shall be allowed in computing the total income in
respect of the assessment year relevant to the previous year in which the industrial undertaking begins to
manufacture or produce articles or things, or to operate its cold storage plant or plants or the ship is first
brought into use or the business of the hotel starts functioning 1[or the company commences work by way
of repairs to ocean-going vessels or other powered craft] (such assessment year being hereafter in this
section referred to as the initial assessment year) and each of the seven assessment years immediately
succeeding the initial assessment year:
Provided that in the case of an assessee, being a co-operative society, the provisions of this
sub-section shall have effect as if for the words “seven assessment years”, the words “nine assessment
years” had been substituted:
1[Provided further that in the case of an assessee carrying on the business of repairs to ocean-going
vessels or other powered craft, the provisions of this sub-section shall have effect as if for the words
“seven assessment years”, the words “four assessment years” had been substituted]:
2[Provided also that in the case of—
an industrial undertaking which begins to manufacture or produce articles or things or to
operate its cold storage plant or plants; or
a ship which is first brought into use; or
the business of a hotel which starts functioning,
on or after the 1st day of April, 1990 3[but before the 1st day of April, 1991], provisions of this
sub-section shall have effect as if for the words “seven assessment years”, the words “nine assessment
years” had been substituted:
Provided also that in the case of an assessee, being a co-operative society, deriving profits and gains
from an industrial undertaking or a ship or a hotel referred to in the third proviso, the provisions of that
proviso shall have effect as if for the words “nine assessment years”, the words “eleven assessment years”
had been substituted.]
Notwithstanding anything contained in any other provision of this Act, the profits and gains of an
industrial undertaking or a ship or the business of a hotel 1[or the business of repairs to ocean-going
vessels or other powered craft] to which the provisions of sub-section
apply shall, for the purposes of
determining the quantum of deduction under sub-section
for the assessment year immediately
succeeding the initial assessment year or any subsequent assessment year, be computed as if such
industrial undertaking or ship or the business of the hotel 1[or the business of repairs to ocean-going