Section 10C of Income Tax Act "Special provision in respect of certain industrial undertakings in North- Eastern Region"
10C. (1) Subject to the provisions of this section, any
profits and gains derived by an assessee from an industrial
undertaking, which has begun or begins to manufacture or
produce any article or thing on or after the 1st day of
April, 1998 in any Integrated Infrastructure Development
Centre or Industrial Growth Centre located in the
North-Eastern Region (hereafter in this section referred to
as the industrial undertaking) shall not be included in the
total income of the assessee.
(2) This section applies to any industrial undertaking which
fulfils all the following conditions, namely :-
(i) it is not formed by the splitting up, or the
reconstruction of, a business already in existence :
Provided that this condition shall not apply in respect of
any industrial undertaking which is formed as a result of
the re-establishment, reconstruction or revival by the
assessee of the business of any such industrial undertaking
as is referred to in section 33B, in the circumstances and
within the period specified in that section ;
(ii) it is not formed by the transfer to a new business of
machinery or plant previously used for any purpose.
Explanation.-The provisions of Explanation 1 and Explanation
2 to sub-section (3) of section 80-IA shall apply for the
purposes of clause (ii) of this sub-section as they apply
for the purposes of clause (ii) of that sub-section.
(3) The profits and gains referred to in sub-section (1)
shall not be included in the total income of the assessee in
respect of ten consecutive assessment years beginning with
the assessment year relevant to the previous year in which
the industrial undertaking begins to manufacture or produce
articles or things.
(4) Notwithstanding anything contained in any other
provision of this Act, in computing the total income of the
assessee of any previous year relevant to any subsequent
assessment year,-
(i) section 32, section 35 and clause (ix) of sub-section
(1) of section 36 shall apply as if deduction referred to
therein and relating to or allowable for any of the relevant
assessment years, in relation to any building, machinery,
plant or furniture used for the purposes of the business of
the industrial undertaking in the previous year relevant to
such assessment year or any expenditure incurred for the
purposes of such business in such previous year had been
given full effect to for that assessment year itself and,
accordingly, sub-section (2) of section 32, sub-section (4)
of section 35 or the second proviso to clause (ix) of
sub-section (1) of section 36, as the case may be, shall not
apply in relation to any such deduction;
(ii) no loss referred to in sub-section (1) of section 72 or
sub-section (1) or sub-section (3) of section 74, in so far
as such loss relates to the business of the industrial
undertaking, shall be carried forward or set off where such
loss relates to any of the relevant assessment years;
(iii) no deduction shall be allowed under section 80HH or
section 80HHA or section 80-I or section 80-IA or section
80-IB or section 80JJA in relation to the profits and gains
of the industrial undertakings; and
(iv) in computing the depreciation allowance under section
32, the written down value of any asset used for the
purposes of the business of the industrial undertaking shall
be computed as if the assessee had claimed and been actually
allowed the deduction in respect of depreciation for each of
the relevant assessment years.
(5) The provisions of sub-section (8) and sub-section (10)
of section 80-IA shall, so far as may be, apply in relation
to the industrial undertaking referred to in this section as
they apply for the purposes of the industrial undertaking
referred to in section 80-IA or section 80-IB, as the case
may be.
(6) Notwithstanding anything contained in the foregoing
provisions of this section, where the assessee before the
due date for furnishing the return of his income under
sub-section (1) of section 139, furnishes to the Assessing
Officer a declaration in writing that the provisions of this
section may not be made applicable to him, the provisions of
this section shall not apply to him in any of the relevant
assessment years :
Provided that no deduction under this section shall be
allowed to any undertaking for the assessment year beginning
on the 1st day of April, 2004 and subsequent years.
Explanation.-For the purposes of this section,-
(i) "Integrated Infrastructure Development Centre" means
such centres located in the States of the North-Eastern
Region, which the Central Government, may, by notification
in the Official Gazette, specify for the purposes of this
section;
(ii) "Industrial Growth Centre" means such centres located
in the States of the North-Eastern Region, which the Central
Government may, by notification in the Official Gazette,
specify for the purposes of this section;
(iii) "North-Eastern Region" means the region comprising the
States of Arunachal Pradesh, Assam, Manipur, Meghalaya,
Mizoram, Nagaland, Sikkim and Tripura;
(iv) "relevant assessment years" means the ten consecutive
years beginning with the year in which the industrial
undertaking begins to manufacture or produce articles or
things.
What are the Definitions under Income Tax 1961? Section 2 of Income Tax Act 1961
What is Previous Year? What is Charge of Income tax? Section 3 and 4 of Income Tax Act 1961
What is Dividend income? Section 8 of Income Tax Act 1961
What is Income deemed to accrue or arise in India? Section 9 of Income Tax Act 1961
What are the Incomes not included in total income? Section 10 of Income Tax Act 1961
What is Meaning of computer programmes in certain cases? Section 10BB of Income Tax Act 1961