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Unit 6: Deductions: For Special Conditions

accordance with the scheme framed and notified by the Central Government in this Notes
regard, in any of the North-Eastern States;
b. Which has begun or begins to manufacture or produce any article or thing, specified in the
Fourteenth Schedule or commences any operation specified in that Schedule, or which
manufactures or produces any article or thing, specified in the Fourteenth Schedule or
commences any operation specified in that 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
the State of Sikkim; or
(ii) On the 7th day of January, 2003 and ending before the 1st day of April, 2012, 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 of the North-Eastern States.
Section 80-IE applies to any industrial undertaking which fulfils all the following conditions,
namely:

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.
This section also 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.

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.
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.
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.

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