Income Tax Act, 2025
Section 7: Clause (vi) omitted by Act 33 of 2009, s. 36 (w.e.f. 12010).
7. Clause (vi) omitted by Act 33 of 2009, s. 36 (w.e.f. 12010).
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(6) Notwithstanding anything contained in sub-section (4), where housing or other activities are an
integral part of the highway project and the profits of which are computed on such basis and manner as
may be prescribed, such profit shall not be liable to tax where the profit has been transferred to a special
reserve account and the same is actually utilised for the highway project excluding housing and other
activities before the expiry of three years following the year in which such amount was transferred to the
reserve account; and the amount remaining unutilised shall be chargeable to tax as income of the year in
which such transfer to reserve account took place.
(7) 1[The deduction] under sub-section (1) from profits and gains derived from an 2[undertaking] shall
not be admissible unless the accounts of the 2[undertaking] for the previous year relevant to the
assessment year for which the deduction is claimed have been audited by an accountant, as defined in
the Explanation below sub-section (2) of section 288, and the assessee furnishes, along with his return of
income, the report of such audit in the prescribed form duly signed and verified by such accountant.
(8) Where any 3[goods or services] held for the purposes of the eligible business are transferred to any
other business carried on by the assessee, or where any 3[goods or services] held for the purposes of any
other business carried on by the assessee are transferred to the eligible business and, in either case, the
consideration, if any, for such transfer as recorded in the accounts of the eligible business does not
correspond to the market value of such 3[goods or services] as on the date of the transfer, then, for the
purposes of the deduction under this section, the profits and gains of such eligible business shall be
computed as if the transfer, in either case, had been made at the market value of such 3[goods or services]
as on that date:
Provided that where, in the opinion of the Assessing Officer, the computation of the profits and gains
of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the
Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit.
4[Explanation.—For the purposes of this sub-section, “market value”, in relation to any goods or
services, means—
(i) the price that such goods or services would ordinarily fetch in the open market; or
(ii) the arm’s length price as defined in clause (ii) of section 92F, where the transfer of such
goods or services is a specified domestic transaction referred to in section 92BA.]
(9) Where any amount of profits and gains of an 2[undertaking] or of an enterprise in the case of an
assessee is claimed and allowed under this section for any assessment year, deduction to the extent of
such profits and gains shall not be allowed under any other provisions of this Chapter under the heading”
C.—Deductions in respect of certain incomes”, and shall in no case exceed the profits and gains of such
eligible business of 2[undertaking] or enterprise, as the case may be.
1. Subs. by Act 20 of 2002, s. 33, for “Where the assessee is a person other than a company or a co-operative society, the
deduction” (w.e.f. 12003).
omitted by Act 33 of 2009, s. 36 (w.e.f. 12010).
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Notwithstanding anything contained in sub-section
1[The deduction] under sub-section
from profits and gains derived from an 2[undertaking] shall
not be admissible unless the accounts of the 2[undertaking] for the previous year relevant to the
assessment year for which the deduction is claimed have been audited by an accountant, as defined in
the Explanation below sub-section
of section 288, and the assessee furnishes, along with his return of
income, the report of such audit in the prescribed form duly signed and verified by such accountant.
Where any 3[goods or services] held for the purposes of the eligible business are transferred to any
other business carried on by the assessee, or where any 3[goods or services] held for the purposes of any
other business carried on by the assessee are transferred to the eligible business and, in either case, the
consideration, if any, for such transfer as recorded in the accounts of the eligible business does not
correspond to the market value of such 3[goods or services] as on the date of the transfer, then, for the
purposes of the deduction under this section, the profits and gains of such eligible business shall be
computed as if the transfer, in either case, had been made at the market value of such 3[goods or services]
as on that date:
Provided that where, in the opinion of the Assessing Officer, the computation of the profits and gains
of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the
Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit.
4[Explanation.—For the purposes of this sub-section, “market value”, in relation to any goods or
services, means—
the price that such goods or services would ordinarily fetch in the open market; or
the arm’s length price as defined in clause
of section 92F, where the transfer of such
goods or services is a specified domestic transaction referred to in section 92BA.]
Where any amount of profits and gains of an 2[undertaking] or of an enterprise in the case of an
assessee is claimed and allowed under this section for any assessment year, deduction to the extent of
such profits and gains shall not be allowed under any other provisions of this Chapter under the heading”
C.—Deductions in respect of certain incomes”, and shall in no case exceed the profits and gains of such
eligible business of 2[undertaking] or enterprise, as the case may be.
1. Subs. by Act 20 of 2002, s. 33, for “Where the assessee is a person other than a company or a co-operative society, the
deduction” (w.e.f. 12003).