Page 127 - DCOM301_INCOME_TAX_LAWS_I

Income Tax Laws – I

Notes (b) the particulars, as may be prescribed in this behalf, have been furnished by the assessee in
respect of new machinery or plant along with the return of income for the assessment year
relevant to the previous year in which such plant or machinery was first put to use.
Where any amount credited to the Special Economic Zone Re-investment Allowance Reserve
Account under clause (ii) of sub-section (1A):

(a) has been utilised for any purpose other than those referred to in sub-section (1B), the
amount so utilised; or
(b) has not been utilised before the expiry of the period specified in sub-clause (i) of clause (a)
of sub-section (1B), the amount not so utilised, shall be deemed to be the profits,—
(i) in a case referred to in clause (a), in the year in which the amount was so utilised; or
(ii) in a case referred to in clause (b), in the year immediately following the period of
three years specified in sub-clause (i) of clause (a) of sub-section (1B), and shall be
charged to tax accordingly.

In computing the total income of the assessee of the previous year relevant to the assessment
year immediately succeeds the last of the relevant assessment years, or of any previous year,
relevant to any subsequent assessment year:
(i) Section 32, section 32A, section 33, section 35 and clause (ix) of sub-section (1) of section 36
shall apply as if every allowance or deduction referred to therein and relating to or
allowable for any of the relevant assessment years 13[ending before the 1st day of April,
2001], in relation to any building, machinery, plant or furniture used for the purposes of
the business of the 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, clause (ii) of sub-section (3) of section 32A, clause (ii) of sub-section (2) of section 33,
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 allowance or 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 undertaking, shall be carried
forward or set off where such loss relates to any of the relevant assessment years 13[ending
before the 1st day of April, 2001];
(iii) No deduction shall be allowed under section 80HH or section 80HHA or section 80-I or
section 80-IA or section 80-IB in relation to the profits and gains of the undertaking; 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 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 year.

Notes For the purposes of this section:
1. Computer software means:
a. Any computer programme recorded on any disc, tape, perforated media or
other information storage device; or
b. Any customized electronic data or any product or service of similar nature, as
may be notified20 by the Board, which is transmitted or exported from India
to any place outside India by any means
Contd...

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