Section 80-IE of Income Tax Act "Special provisions in respect of certain undertakings in North-Eastern States"
80-IE. (1) Where the gross total income of an assessee
includes any profits and gains derived by an undertaking, to
which this section applies, from any business referred to in
sub-section (2), there shall be allowed, in computing the
total income of the assessee, a deduction of an amount equal
to hundred per cent of the profits and gains derived from
such business for ten consecutive assessment years
commencing with the initial assessment year.
(2) This section applies to any undertaking which has,
during the period beginning on the 1st day of April, 2007
and ending before the 1st day of April, 2017, begun or
begins, in any of the North-Eastern States,-
(i) to manufacture or produce any eligible article or thing;
(ii) to undertake substantial expansion to manufacture or
produce any eligible article or thing;
(iii) to carry on any eligible business.
(3) This section applies to any undertaking which fulfils
all the following conditions, namely :-
(i) it is not formed by splitting up, or the reconstruction,
of a business already in existence :
Provided that this condition shall not apply in respect of
an undertaking which is formed as a result of the
re-establishment, reconstruction or revival by the assessee
of the business of any such undertaking as referred to in
section 33B, in the circumstances and within the period
specified in the said 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 Explanations 1 and 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.
(4) Notwithstanding anything contained in any other
provision of this Act, in computing the total income of the
assessee, no deduction shall be allowed under any other
section contained in Chapter VIA or in section 10A or
section 10AA or section 10B or section 10BA, in relation to
the profits and gains of the undertaking.
(5) Notwithstanding anything contained in this Act, no
deduction shall be allowed to any undertaking under this
section, where the total period of deduction inclusive of
the period of deduction under this section, or under section
80-IC or under the second proviso to sub-section (4) of
section 80-IB or under section 10C, as the case may be,
exceeds ten assessment years.
(6) The provisions contained in sub-section (5) and
sub-sections (7) to (12) of section 80-IA shall, so far as
may be, apply to the eligible undertaking under this
section.
(7) For the purposes of this section,-
(i) "initial assessment year" means the assessment year
relevant to the previous year in which the undertaking
begins to manufacture or produce articles or things, or
completes substantial expansion;
(ii) "North-Eastern States" means the States of Arunachal
Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland,
Sikkim and Tripura;
(iii) "substantial expansion" means increase in the
investment in the plant and machinery by at least
twenty-five per cent of the book value of plant and
machinery (before taking depreciation in any year), as on
the first day of the previous year in which the substantial
expansion is undertaken;
(iv) "eligible article or thing" means the article or thing
other than the following :-
(a) goods falling under Chapter 24 of the First Schedule to
the Central Excise Tariff Act, 1985 (5 of 1986), which
pertains to tobacco and manufactured tobacco substitutes;
(b) pan masala as covered under Chapter 21 of the First
Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);
(c) plastic carry bags of less than 20 microns as specified
by the Ministry of Environment and Forests vide Notification
No. S.O. 705(E), dated the 2nd September, 1999 and S.O.
698(E), dated the 17th June, 2003; and
(d) goods falling under Chapter 27 of the First Schedule to
the Central Excise Tariff Act, 1985 (5 of 1986), produced by
petroleum oil or gas refineries;
(v) "eligible business" means the business of,-
(a) hotel (not below two star category);
(b) adventure and leisure sports including ropeways;
(c) providing medical and health services in the nature of
nursing home with a minimum capacity of 25 beds;
(d) running an old-age home;
(e) operating vocational training institute for hotel
management, catering and food craft, entrepreneurship
development, nursing and para-medical, civil aviation
related training, fashion designing and industrial training;
(f) running information technology related training centre;
(g) manufacturing of information technology hardware; and
(h) bio-technology.
Section 80IAC Special provision in respect of specified business
Section 80IBA Deductions in respect of profits and gains from housing projects
80IE Special provisions in respect of certain undertakings in North-Eastern States
What is Deduction in respect of income of co-operative societies? Section 80P of Income Tax Act 1961
What is Deduction in respect of royalty on patents? Section 80RRB of Income Tax Act 1961
What is Deduction in case of a person with disability? Section 80U of Income Tax Act 1961