Page 163 - DCOM301_INCOME_TAX_LAWS_I

Income Tax Laws – I

Notes scale industrial undertaking or an industrial undertaking referred to in sub-section (4)
shall apply as if the words “not being any article or thing specified in the list in the
Eleventh Schedule” had been omitted.
Explanation 1.—For the purposes of clause (ii), any machinery or plant which was used outside
India by any person other than the assessee shall not be regarded as machinery or plant previously
used for any purpose, if the following conditions are fulfilled, namely:
a. Such machinery or plant was not, at any time previous to the date of the installation by the
assessee, used in India;
b. Such machinery or plant is imported into India from any country outside India; and
c. No deduction on account of depreciation in respect of such machinery or plant has been
allowed or is allowable under the provisions of this Act in computing the total income of
any person for any period prior to the date of the installation of the machinery or plant by
the assessee.
Explanation 2.—Where in the case of an industrial undertaking, any machinery or plant or any
part thereof previously used for any purpose is transferred to a new business and the total value
of the machinery or plant or part so transferred does not exceed twenty per cent of the total value
of the machinery or plant used in the business, then, for the purposes of clause (ii) of this
sub-section, the condition specified therein shall be deemed to have been complied with;
4. In a case where the industrial undertaking manufactures or produces articles or things, the
undertaking employs ten or more workers in a manufacturing process carried on with the
aid of power, or employs twenty or more workers in a manufacturing process carried on
without the aid of power.
Section 80-IC applies to any industrial undertaking which fulfils all the following conditions,
namely:

This section applies to any undertaking or enterprise:
a. Which has begun or begins to manufacture or produce any article or thing, not being any
article or thing specified in the Thirteenth Schedule, or which manufactures or produces
any article or thing, not being any article or thing specified in the Thirteenth Schedule and
undertakes substantial expansion during the period beginning:

(i) On the 23rd day of December, 2002 and ending before the 1st day of April, 2012, in
any Export Processing Zone or Integrated Infrastructure Development Centre or
Industrial Growth Centre or Industrial Estate or Industrial Park or Software
Technology Park or Industrial Area or Theme Park, as notified by the Board in
accordance with the scheme framed and notified by the Central Government in this
regard, in the State of Sikkim; or
(ii) On the 7th day of January, 2003 and ending before the 1st day of April, 2012, in any
Export Processing Zone or Integrated Infrastructure Development Centre or
Industrial Growth Centre or Industrial Estate or Industrial Park or Software
Technology Park or Industrial Area or Theme Park, as notified by the Board in
accordance with the scheme framed and notified by the Central Government in this
regard, in the State of Himachal Pradesh or the State of Uttaranchal; or
(iii) On the 24th day of December, 1997 and ending before the 1st day of April, 2007, in
any Export Processing Zone or Integrated Infrastructure Development Centre or
Industrial Growth Centre or Industrial Estate or Industrial Park or Software
Technology Park or Industrial Area or Theme Park, as notified by the Board in

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