Page 159 - DCOM301_INCOME_TAX_LAWS_I

Income Tax Laws – I

Notes

Notes Assessing Officer" (AO) means the Income-Tax Officer or Assistant Commissioner
of Income-Tax or Deputy Commissioner of Income-Tax or Joint Commissioner of
Income-Tax or Additional Commissioner of Income-Tax who is authorized by the Board
to exercise or perform all or any of the powers and functions conferred on, or assigned to
an AO under the Income tax Act, 1961.
The Assessing Officer is empowered to make an adjustment while computing the profit and
gains of the eligible business on the basis of the reasonable profit that can be derived from the
transaction, in case the transaction between the assessee carrying on the eligible business under
section 80-IC and any other person is so arranged that the transaction produces excessive profits
to the eligible business.

!
Caution With the increasing usage of Internet for Income Tax related work including
tasks such as applying for PAN and TAN or for filing Income Tax returns, the common
problem being faced by many taxpayers and assessees is how to find out their particular
Circle/Ward/Range in which they need to file return with or are assessed with.

Self Assessment

Fill in the blanks:
11. ……………..allows tax holiday to the new undertakings or existing undertakings on their
substantial expansion in the states of Himachal Pradesh, Uttaranchal, Sikkim and North-
Eastern States.
12. The tax holiday in the states of Himachal Pradesh and Uttaranchal will be 100% for the first
five assessment years and ………………. for the next five assessment years.
13. Tax holiday in the states of Sikkim and North-Eastern States will be …………………for ten
assessment years commencing from the initial assessment year.

6.4 Tax Holiday in Respect of Profits and Gains from Eligible Business

of Certain Undertakings in North-Eastern States (Section 80-IE)

This section provides for an incentive to an undertaking which has during the period between
1st April, 2007 and 1st April, 2017, begun or begins, in any of the North-Eastern States (i.e., the
States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and
Tripura) -

1. to manufacture or produce any eligible article or thing;
2. to undertake substantial expansion to manufacture or produce any eligible article or
thing;
3. to carry on any eligible business.
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 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;

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